Japan Shares Plunge to One-Month Lows on Supply Worries

Japanese shares 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 Coronavirus 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.