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JAPAN-TOKYO STOCKS-CLOSING-ROUNDUP
Tokyo stocks close lower as Renesas adds to concerns over global chip shortage
TOKYO, March 22,2021 (BSS/XINHUA) – Tokyo stocks closed lower Monday with auto-related issues losing ground as Renesas Electronics Corp. warned that a fire at one of its plants could further contribute to a lack of semiconductors and ongoing global supply chain disruptions.
The 225-issue Nikkei Stock Average dropped 617.90 points, or 2.07 percent, from Friday to close the day at 29,174.15.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 22.03 points, or 1.09 percent, to finish at 1,990.18.
Automakers and technology issues were hurt following Japanese semiconductor maker Renesas Electronics saying the production of chips at a plant near Tokyo had been partially suspended due to a fire.
Local brokers said the partial suspension of production at the plant sparked concerns about a shortfall in chip supplies affecting the auto industry.
Global supply chains of semiconductors have been hit by the novel coronavirus pandemic forcing makers to limit or shutter their operations, which in turn has seen automakers adjust or halt production, they added.
“There is a growing risk that the worldwide chip shortage may get even worse due to the fire at the Renesas factory,” Makoto Sengoku, a market analyst at the Tokai Tokyo Research Institute, was quoted as saying.
Other strategists here said, meanwhile, that the Bank of Japan’s (BOJ) decision last week to only buy Topix-linked ETFs continued to rock the market amid ongoing concerns over rising U.S. bond yields.
“Today we have had a confluence of negative factors such as a fire at Renesas factory and the market confusion after the BOJ’s move,” Shinichi Ichikawa, senior fellow at Pictet Asset Management, was quoted as saying.
“But fundamentally, the market is likely going through a correction on worries about rising U.S. bond yields,” Ichikawa said.
By the close of play, transportation equipment, insurance and machinery-linked issues comprised those that declined the most.
Among automakers losing ground on chip supply concerns, Nissan Motor reversed 3.7 percent, while Honda Motor lost 3.6 percent. Toyota Motor dropped 3.3 percent, while car parts maker Denso dropped 4.9 percent.
Renesas Electronics, for its part, closed the day 4.9 percent lower.
Nikkei heavyweights fell following the BOJ’s decision regarding ETFs, with Uniqlo casual clothing chain operator Fast Retailing dropping 4.5 percent, while Daikin retreated 4.0 percent.
Issues that fell outpaced those that rose by 1,190 to 908 on the First Section, while 97 ended the day unchanged.
On the main section on Monday, 1,384.26 million shares changed hands dropping from Friday’s volume of 2,101.87 million shares.
The turnover on the first trading day of the week came to 3,033.82 billion yen (27.91 billion U.S. dollars).
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