A man tracks stock movements on an electronic board outside the Tokyo Stock Exchange on June 21, 2021. Reuters
TOKYO (Reuters) – Japanese stocks plunged on Friday to a one-month low on mounting concerns that multiple disruptions to global supply chains may keep inflation high for much longer.
Investor sentiment was also pressured by the postponement of a vote on an important spending bill for the administration of US President Joe Biden, as Democratic leaders scramble to rally enough support.
The Nikkei index lost 2.31 percent to 28,771.07 points, while the broader Topix index fell 2.16 percent to 1986.31 points, both of which were the biggest declines in three months, bringing the two indexes to their lowest levels since early September.
For the week, the Nikkei fell 4.89 percent, the largest loss since the market collapsed after the outbreak of the Corona virus in early 2020.
Price pressures are increasing globally due to material shortages, lack of ships, rising gas prices in Europe and electricity shortages in China.
Nitori shares lost 6 percent after the company’s operating company’s revenue fell short of market expectations in its quarterly results.
Sumitomo Chemical shares fell 5.3 percent after the company reported a lower-than-market earnings estimate for the quarter ending in September.
Silicon chip maker Somco lost 4.4 percent after the company revealed a plan to sell 128 billion yen of new stock to fund an increase in chip production.
Shares that were added to the benchmark Nikkei index fell sharply on Thursday in reaction to gains made before the addition.
Nintendo fell 8.7 percent, the biggest drop since early 2019, while Murata Manufacturing fell 5.7 percent and Keynes, Japan’s second-largest company by market capitalization, fell 3 percent.
Bucking the trend, Toshiba rose 3.1 percent after US hedge fund Elliott Management said it had a “significant” stake in the Japanese industrial conglomerate.
Rakuten gained 3.2% after the e-commerce company said it was preparing to list its online banking unit.
Shares of GRE jumped 16.2 percent to reach the upper limit, after the gaming company announced a massive share buyback.
(Prepared by Moataz Mohamed for the Arabic Bulletin)
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