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Nikkei falls to 8-month low as Toyota drags peers, materials makers

08/20/2021 | 02:55am EST

TOKYO, Aug 20 (Reuters) - Japan's Nikkei stock average closed at a near eight-month low on Friday, dragged down by automakers and their related sectors on growing concerns about a recovery after Toyota cut its global production.

The Nikkei share average fell 0.98% to close at 27,013.25, its lowest since December 28. The broader Topix dropped 0.87% to 1,880.68.

For the week, Nikkei shed 3.4%, the biggest weekly loss since mid-May.

"Toyota triggered declines in the Nikkei. Today many other shares surrounding Toyota were affected," said Kentaro Hayashi, senior strategist at Daiwa Securities.

"Toyota's output cut almost crashed hopes of an economic recovery from the pandemic low."

Toyota Motor said on Thursday it would slash global production for September by 40% from its previous plan.

Toyota slipped 4.09%, while Honda Motor lost 4.84% and Nissan Motor plunged 7.25%. Toyota's affiliates Denso tumbled 8.83% while Aisin lost 5.28%.

Makers of car materials, such as steel, grass and rubbers

led declines in the Tokyo Stock Exchange's 33 industry subindexes.

Shippers fell the most among the subindexes, with a drop of 8.17%.

Chip-related shares were also weak despite gains in their U.S. peers after chip maker Nvidia Corp's forecast of third-quarter revenue beat Wall Street's expectations.

Advantest snapped earlier gains to fall 0.45%, while Tokyo Electron edged up 0.28%.

Defensive shares shined, with food maker Ajinomoto, up 2.65%, rising the most in the Nikkei, followed by utility Tokyo Electric Power Company, rising 2.48% and drug maker Daiichi Sankyo up 2.44%.

Denso was the worst performer in the Nikkei, followed by shipper Nippon Yusen losing 8.42% and its peer Kawasaki Kisen down 8.15%. (Reporting by Junko Fujita; Editing by Krishna Chandra Eluri)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ADVANTEST CORPORATION 0.71% 9880 End-of-day quote.27.81%
AISIN CORPORATION -4.01% 4190 End-of-day quote.35.38%
AJINOMOTO CO., INC. -0.20% 3479 End-of-day quote.48.83%
DAIICHI SANKYO COMPANY, LIMITED -1.02% 2912 End-of-day quote.-17.62%
DENSO CORPORATION -1.79% 8502 End-of-day quote.38.60%
HONDA MOTOR CO., LTD. -3.79% 3124 End-of-day quote.8.57%
KAWASAKI KISEN KAISHA, LTD. 2.81% 4945 End-of-day quote.134.14%
NIPPON YUSEN KABUSHIKI KAISHA 2.44% 7550 End-of-day quote.214.32%
NISSAN MOTOR CO., LTD. -5.63% 593.5 End-of-day quote.5.98%
NVIDIA CORPORATION 5.95% 333.76 Delayed Quote.141.31%
TOKYO ELECTRIC POWER COMPANY HOLDINGS, INCORPORATED -1.28% 308 End-of-day quote.13.24%
TOKYO ELECTRON LIMITED -0.39% 60600 End-of-day quote.57.81%
TOYOTA MOTOR CORPORATION -3.01% 2012 End-of-day quote.26.43%
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