Photo: Kabacchi via Flickr
Japanese manufacturing and auto stocks are under pressure today, with shares in some of the country’s biggest names selling off bigAnd while the cut to the country’s electricity output, and immediate work stoppage at northeast Japanese production facilities, is a driver for this selloff, so too are concerns over supply chain disruptions.
From Bank of America’s Masatoshi Kikuchi (emphasis ours):
Although the damage this time is more around smaller towns, the devastation is spread along a large swathe of the Pacific coast. The Tohoku region produces components for key manufacturing industries like electrical equipment and autos, and supply chain disruptions are likely, in our view. A major impact on production activity in the Kanto region is also possible due to the stoppage at Tokyo Electric Power’s nuclear power plant in the Fukushima prefecture. The quake is also likely to hurt the service sector, with many events and dining out already shelved.
Some of the companies that were taking stock hits today because of production disruptions included:
- Hitachi down 16%
- Mitsubishi Chemical down 12%
- Sony down 9%
- Nissan Motor down 7%
- Toyota Motor down 6%
- Honda down 4.86%