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
"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)