TOKYO: Tokyo stocks closed lower on Thursday after Toyota announced a recall of a million vehicles, and its subsidiary Daihatsu decided to suspend shipments of all models over rigged safety tests.
The benchmark Nikkei 225 index lost 1.59 percent, or 535.47 points, to end at 33,140.47, while the broader Topix index fell 1.00 percent, or 23.40 points, to 2,325.98. “Toyota briefly sank more than five percent over concerns of a quality fraud problem of its subsidiary Daihatsu,” Iwai Cosmo Securities said. Daihatsu’s announcement on Wednesday came after an independent panel found the malpractice dated back to 1989, when the oldest instance was confirmed.
The panel was set up this year to probe a safety scandal that emerged in April.
Hours after the Daihatsu report, Toyota said it will recall 1 million vehicles due to concerns over airbag censors.
In Tokyo trading, Toyota tumbled 4.02 percent to 2,537.5 yen, after temporarily sinking 5.6 percent. Other automakers were also down with Nissan plunging 2.96 percent to 562.1 yen and Honda dropping 2.92 percent to 1,442 yen.
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