Japanese shares slump to one-month low as supply fears widen

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TOKYO, Oct 1 (Businesshala) – Japanese stocks hit a one-month low on Friday on rising fears that various supply chain disruptions around the world could lead to a longer-term rise in inflation.

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As of late morning trading, the Nikkei average fell 1.91% to 28,879.01, while the broader Topix fell 2.09%, eroding gains made after Prime Minister Yoshihide Suga offered to resign on Sept.

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For the week, Topix has lost 4.9% so far, on course to post its biggest weekly loss since the market crash in early 2020 following the coronavirus outbreak.

“The sentiment is very weak. Investors are beginning to fear that inflation is not temporary given the various supply constraints. This means a major review of their economic outlook is needed,” said a strategist at a Japanese brokerage who He declined to be named as he is not authorized to speak to the media.

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Price pressures are mounting globally due to staff shortages, shipwrecks, rising gas prices in Europe and power shortages in China.

Nitori fell 5.9% after the furniture store chain operator’s quarterly results missed the markets’ top line forecast.

Sumitomo Chemical lost 4.6% after its profit estimate for the quarter ended September fell below market expectations.

Silicon wafer maker Sumco lost 3.2% after it unveiled plans to sell 128 billion yen ($1.14 billion) of new shares to fund growth in silicon wafer production.

Shares added to the Nikkei Average on Thursday fell sharply in reaction to gains before joining.

Nintendo fell 5.2%, while Murata Manufacturing lost 4.6% and Keynes, Japan’s second-largest company by market capitalization, fell 2.4%.

Continuing the trend, Toshiba gained 3.3% after activist US hedge fund Elliott Management owned a “significant” stake in the Japanese industrial conglomerate.

Rakuten gained 3.1% as the e-commerce firm said it was preparing to list its online banking unit.

Gree was unruly with a flurry of bids after the game company announced a massive share buyback and were set to hit near-limit-highs.

The market did not react to Bank of Japan’s tanken business sentiment data.

Reporting by Hideyuki Sano; Editing by Sherry Jacob-Phillips

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