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Japan Stocks fall on concerns over global chip supplies

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Capital Market
Last Updated : Mar 22 2021 | 7:04 PM IST
Japan share market finished session lower on Monday, 22 March 2021, as risk aversion selloff triggered in the wake of yen appreciation to the upper 108 zone against greenback and BOJ's decision last week to end its purchases of exchange-traded funds linked to the benchmark Nikkei average. Meanwhile, fears of disruptions in the global supply of semiconductors also fuelled selloff.

At closing bell, the 225-issue Nikkei Stock Average declined 617.90 points, or 2.07%, to 29,174.15. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 22.03 points, or 1.09%, to 1,990.18.

Total 24 out of 33 industry category of Topix index ended into negative territory, with Transportation Equipment, Insurance, Machinery, Nonferrous Metals, Electric Appliances, and Services issues being notable losers, whereas Marine Transportation, Iron & Steel, Electric Power & Gas, Oil & Coal Products, and Mining issues were notable gainers.

The selloff in the Tokyo market largely due to the BOJ's announcement of new ETF purchase plan covering only TOPIX-linked funds. Meanwhile selloff fuelled further after Renesas Technologies' announcement that its fire-hit semiconductor plant in Ibaraki Prefecture may take a month before becoming able to resume production.

CURRENCY NEWS: The Japanese yen appreciated to the upper 108 zone against greenback as traders fled to the safe-haven currency amid concerns about a plunge in the Turkish lira after President Tayyip Erdogan replaced the country's central government chief with one who is critical of a high interest rate policy. The dollar fetched 108.68-69 yen compared with 108.82-92 yen in New York and 108.74-76 yen in Tokyo on Friday.

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First Published: Mar 22 2021 | 4:52 PM IST

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