Japanese automaker Toyota led losses on the Japan’s benchmark Nikkei 225 index Thursday, closing decrease by 4%.
The sharp fall got here after Toyota announced a recall of about 1,000,000 autos on Thursday.
The safety recall concerned sure 2020-2022 Toyota and Lexus fashions within the United States.
The sell-off additionally comes after Toyota subsidiary Daihatsu halted shipments of all its vehicles on Wednesday, after an investigation discovered safety issues with its automobiles, together with circumstances the place airbag management items utilized in airbag checks for some fashions have been totally different from those bought to the general public.
A impartial panel had been probing Daihatsu after it said in April it had rigged side-collision safety checks carried out for 88,000 small automobiles, most of these bought as Toyotas.
Japan’s wider Nikkei 225 plunged 1.50% Thursday, whereas the Topix fell 0.9%, dragged down by the safety scandals at Toyota. Most Asia-Pacific markets fell after Wall Street dropped in a single day.
Toyota shares year-to-date