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Japan shares fall most in five weeks as governance worries spook investors

Stock Markets Sep 27, 2019 08:50
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Japan shares fall most in five weeks as governance worries spook investors

By Stanley White

TOKYO, Sept 27 (Reuters) - Japanese shares fell the most in

almost five weeks on Friday after Kansai Electric Power Co Inc

9503.T revealed payments to executives from an outside

individual, at a time the government is calling for improved

governance to attract foreign investors.

Shares in Apple Inc AAPL.O supplier Japan Display Inc

6740.T also tumbled the most in more than three months after a

Chinese investor withdrew from an 80 billion yen ($742.46

million) bailout of the smartphone screen maker. The Nikkei 225 index .N225 ended down 0.77% at 21,878.90

after briefly touching its lowest since Sept. 11.

At a hastily arranged news conference on Friday, Kansai

Electric President Shigeki Iwane said he and some other

executives had received 320 million yen payments from a person

outside the company over a period of seven years. The revelation came after Kyodo news agency reported the

deputy mayor of a town hosting a Kansai Electric nuclear power

plant had disclosed such payments to tax authorities as a token

of appreciation. The deputy mayor has since died, Kyodo said.

"The news about Kansai Electric suggests this problem goes

right to the top of the organisation, and this problem could get

bigger still," said market analyst Yutaka Masushima at Monex


"Of course, there is a risk this leads to a decline in trust

in Japanese stocks. Trust from overseas investors could fall.

We've had other governance problems in the past."

Since taking office in 2012, Prime Minister Shinzo Abe has

enacted policies to improve corporate governance to attract more

foreign investors. However, the effort suffered a blow last year

from an executive pay scandal at Nissan Motor Co Ltd 7201.T .

For the full week, Nikkei shares fell 0.91% for the steepest

weekly decline since Aug. 16, as sentiment for stocks weakened

globally due to concerns about the broader market impact of an

impeachment probe of U.S. President Donald Trump. There were 189 decliners on the Nikkei index against 33

advancers on Friday.

The largest percentage losses in the Nikkei 225 index were

Kansai Electric at 5.71%, followed by Sumitomo Corp 8053.T

losing 4.60% and Chiba Bank Ltd 8331.T down by 4.42%.

The largest percentage gainers were Fanuc Corp 6954.T by

2.23%, followed by Sumco Corp 3436.T at 1.86% and Advantest

Corp 6857.T up by 1.69%.

The broader Topix .TOPX ended down 1.17% at 1,604.25.

The volume of shares traded on the Tokyo Stock Exchange's

main board .TOPX was 1.13 billion, versus an average of 1.16

billion yen over the past 30 days.

($1 = 107.7500 yen)

Apple supplier Japan Display loses out on Chinese funds, bailout

at risk Kansai Electric to hold news conference on reports of

payments report complains of White House cover-up on

Trump-Ukraine scandal ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Japan shares fall most in five weeks as governance worries spook investors

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