schema:articleBody
| - Tokyo's benchmark Nikkei index closed down more than 2.0 percent Monday, tracking falls on key US indexes, as the impact of a fire at Renesas's chip plant weighed on the market. The Nikkei 225 index fell 2.07 percent, or 617.90 points, to 29,174.15 while the broader Topix index was down 1.09 percent, or 22.03 points, at 1,990.18. Tokyo shares opened lower with investors disheartened by weak US markets as they weighed risks linked to yields. Investors were rattled by Fed comments that a temporary rule allowing banks to exclude central bank deposits and Treasury bonds from capital requirements will expire at the end of the month. That raised fears that banks will dump their bond holdings, which would cause yields to rise further and constrain borrowing. Global markets have been facing pressure from rising yields to the 10-year US Treasury bond. "This week will see several occasions when US Federal Reserve officials will speak publicly," Daiwa Securities said in a commentary. "Depending on their comments, yields could rise further," the Japanese brokerage said. In Tokyo, automakers slumped after chip maker Renesas Electronics told local media a fire at its major domestic plant would impact stable chip supply to customer companies, led by automakers. "Renesas's impact on the entire market was not small," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities. "Carmakers have already been under pressure due to global shortages of semiconductors," Horiuchi told AFP. Honda dropped 3.63 percent to 3,345 yen, Toyota lost 3.26 percent to 8,362 yen and Nissan was down 3.70 percent at 601 yen. Renesas plunged 4.88 percent at 1,168 yen after its president reportedly said in a press conference Sunday a fire in one of its nine factories in Japan will likely "have a significant impact" on chip supplies. It will take about a month for Renesas to resume operation, the leading business daily Nikkei reported, citing chief executive Hidetoshi Shibata. The dollar fetched 108.75 yen in Asian afternoon trade, against 108.87 yen in New York late Friday. kh-si/sah/rbu
|