June 7, 2023

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Under pressure from Toyota and Nissan, the Nikkei hit an eight-month low

Under pressure from Toyota and Nissan, the Nikkei hit an eight-month low

The Japanese Nikkei index closed at its lowest level on Friday, almost eight months ago, on the back of falling stock in automakers and related sectors, amid growing concern over recovery after Toyota cut its global output.
The Nikkei index fell 0.98 percent to close at 27,013.25 points, the lowest level since December 28. The broader Topics Index fell 0.87 percent to 1,880.68 points.
During the week, the Nikkei fell 3.4 percent, the biggest weekly loss since mid-May.
“Toyota has introduced a decline in the Nikkei,” said Kentaro Hayashi, chief strategist at Diva Securities. Today other stocks around Toyota are affected. Toyota’s production has crushed hopes of an economic recovery from the fall of the epidemic.
Toyota Motor on Thursday said it would cut global production by 40 percent from its previous plan for September.
Shares of Toyota fell 4.09 percent, shares of Honda Motor Co fell 4.84 percent and shares of Nissan Motor fell 7.25 percent. Shares of Toyota subsidiary Tenzo fell 8.83 percent, while its Saga Ice lost 5.28 percent.
Manufacturers of auto products such as steel, glass and rubber fell in 33 sector sub-indices on the Tokyo Stock Exchange.
Shipping companies fell the most in sub-indices, falling 8.17 percent.
After chip maker Nvidia Corp forecast third-quarter earnings to beat Wall Street expectations, chip-related stocks weakened despite gains from US peers.
Advante fell 0.45 percent, while Tokyo Electron rose 0.28 percent.
Tenzo performed worse than the Nikkei, followed by Nippon Eusen losing 8.42 percent and Kawasaki Kitchen falling 8.15 percent.

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