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Japan’s Nikkei index experienced a decline on Thursday, influenced by a significant sell-off on Wall Street and a notable drop in Toyota’s shares due to a growing safety concern within its Daihatsu Motor unit.
The Nikkei closed at 33,140.47 points, reflecting a decrease of 1.59 percent. Among the 225 listed stocks, 187 faced declines, 36 saw gains, and two remained stable. The broader Topix index also saw a 1 percent drop.
On the prior day, the Nikkei had approached its 33-year high, reaching 33,824.06 points, following the Bank of Japan’s decision to maintain its current monetary policy stance. However, this disappointed traders who were anticipating indications of an imminent shift away from the ultra-loose policy.
Wednesday’s optimism, driven by the rise in US stocks, including record levels in the Dow Jones and Nasdaq indices, was overshadowed by Thursday’s sell-off.
Toyota’s shares experienced a significant decline of 5.6 percent, ultimately closing down 4 percent. This followed an announcement from its small car manufacturing unit, Daihatsu Motor, stating that it would halt all vehicle shipments. An independent committee had concluded that crash tests had been tampered with, contributing to the safety scandal.
Toyota’s downturn made the transportation equipment sub-index the worst performer among the 33 sub-sectors on the Tokyo Stock Exchange, with a decline of 2.87 percent.
Fast Retailing, the owner of the Uniqlo clothing brand, also saw a notable drop of 3.91 percent, becoming the leading contributor to the Nikkei index’s largest decline.
