TOKYO, March 22 (Reuters) - Carmakers led declines in
Japanese shares on Monday after a fire at semiconductor supplier
Renesas Electronics' 6723.T plant fanned worries about more
chip supply shortfalls hitting vehicle production.
The Nikkei continued to underperform the broader market,
after the Bank of Japan on Friday decided to exclude
Nikkei-linked exchange traded funds (ETFs) from its purchase.
The Nikkei share average .N225 fell 1.84% to 29,239.92,
testing a major support from its 50-day moving average at around
29,108.
On course to snap a nine-day winning streak, the broader
Topix .TOPX lost 1.19% to 1,988.26, slipping from its 30-year
peak hit on Friday.
Renesas dropped as much as 5.5% after the key automotive
semiconductor supplier said production at its fire-damaged plant
will take at least a month to restart, and carmakers will start
to feel a supply pinch in about a month. The transport equipment index .ITEQP.T was the biggest
drag in the market.
Honda Motor 7267.T dropped 3.2% while Nissan Motor
7201.T lost 2.8%. Car parts maker Denso 6902.T shed 4.5% and
Toyota Motor 7203.T declined 2.4%.
The shares that have big weightings in the Nikkei average
continued to reel from the Bank of Japan's decision to buy only
Topix-linked ETFs.
Fast Retailing 9983.T dropped 3.2% while Fanuc 6954.T
lost 3.1%.
"Today we have had a confluence of negative factors such as
a fire at Renesas factory and the market confusion after the
BOJ's move. But fundamentally, the market is likely going
through a correction on worries about rising U.S. bond yields,"
said Shinichi Ichikawa, senior fellow at Pictet Asset
Management.
Tokio Marine 8766.T fell 4.6% on worries about its
exposure to collapsed British supply chain finance firm, through
its subsidiary in Australia.