TOKYO, March 22 (Reuters) – Japanese shares tumbled on Monday as car makers took a hit after a fire at a plant owned by semiconductor supplier Renesas Electronics fanned worries about more chip supply shortfalls hitting vehicle production.<\/p>\n
The Nikkei continued to underperform the broader market, after the Bank of Japan said on Friday it would no longer purchase Nikkei-linked exchange traded funds (ETFs).<\/p>\n
The Nikkei share average fell 2.07% to close at 29,174.15, its biggest decline since March 4.<\/p>\n
The broader Topix ended its eight-day winning streak, falling 1.09% to close at 1,990.18.<\/p>\n
Renesas dropped as much as 4.89% 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.<\/p>\n
The transport equipment index was the biggest drag in the market, followed by the insurance sector.<\/p>\n
Honda Motor dropped 3.63% while Nissan Motor lost 3.7%. Car parts maker Denso shed 4.94% and Toyota Motor fell 3.26%.<\/p>\n
The shares that have big weightings in the Nikkei average continued to reel from the Bank of Japan\u2019s decision to buy only Topix-linked ETFs.<\/p>\n
Fast Retailing dropped 4.54% while Daikin fell 4.02%.<\/p>\n
\u201cToday we have had a confluence of negative factors such as a fire at Renesas factory and the market confusion after the BOJ\u2019s move. But fundamentally, the market is likely going through a correction on worries about rising U.S. bond yields,\u201d said Shinichi Ichikawa, senior fellow at Pictet Asset Management.<\/p>\n
Tokio Marine fell 5.55% on worries about its exposure to collapsed British supply chain finance firm, through its subsidiary in Australia.<\/p>\n