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Japanese stocks collapse to month-long low as supply fears deepen


TOKYO, Oct. 1 (Reuters) – Japanese stocks fell to their one-month low on Friday amid growing fears that various supply chain disruptions around the world could keep inflation high for a much longer period.

By late morning, the Nikkei average lost 1.91% to 28,879.01 while the broad Topix fell 2.09%, erasing gains made after Prime Minister Yoshihide Suga offered to step down September 3.

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

“Sentiment is very weak. Investors are starting to fear that inflation is not temporary given various supply constraints. This means their economic scenario needs a closer look,” said a strategist at a Japanese brokerage house who declined to be named because he is not authorized to speak. to the media.

The pressure on prices is increasing globally due to staff shortages, lack of ships, soaring gas prices in Europe and shortage of electricity in China.

Nitori lost 5.9% after the operator of the furniture store chain missed the market’s most important forecast in its quarterly results.

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

Silicon wafer maker Sumco lost 3.2% after unveiling a plan to sell 128 billion yen ($ 1.14 billion) of new stocks to fund increased production of silicon wafers.

Stocks that were added to the Nikkei average on Thursday fell sharply in reaction to pre-inclusion gains.

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

Reversing the trend, Toshiba gained 3.3% after US hedge fund Elliott Management said it had a “significant” stake in the Japanese industrial conglomerate.

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

Gree was not traded with a glut of bids and looked set to hit the maximum limit at the close after the games company announced a massive share buyback.

The market showed no reaction to the Bank of Japan’s tankan business sentiment data.

(Reporting by Hideyuki Sano; Editing by Sherry Jacob-Phillips)