Stocks in Tokyo have seen a huge slide due to Toyota’s recent recall of eight of its models. The high Yen is now having an adverse effect on exporter shares, but it is the Japanese automaker that is taking the biggest beating for the fourth day in a row.
This is all to do with Toyota halting the production of eight models until they can solve the problem with the faulty accelerator pedals, which we covered in a recent post. The Yen is going from strength to strength, with a five-week high against the U.S. Dollar and a nine-month high against the Euro.
Toyota shares fell 4.4% to just Y3,705, following the announcement of the U.S. division suspending sales of eight of its new models to solve the issue of the faulty accelerator pedal. Production has now been suspended for one week.
It is not known how long shares will be affected, we will have to wait until we know how long the duration of the suspension is, this was according to Goldman Sachs analyst Kota Yuzawa. The high Yen is also playing its part for Toyota as it is for other Japanese exporters.
Sony saw a drop of 2% to Y2,940, while Canon shares fell by 2.8% to Y3,615. For more details on this visit The Wall Street Journal.