- Lee Sang Hyun, an analyst at NH Investment & Securities Co.
Japanese carmakers plan to slash production in China by half, as sales in the world's second biggest economy tumbled due to the anti-Japan protests in the country. Nissan is going to suspend the night shifts and operate only during the day, while Toyota and Honda are going to slow down the speed of production lines as well as shorten working hours.
"They're more than likely to turn their attention to American products, especially General Motors, but also Ford, but this could also change if there was ever a dispute between America and China," said says Michael Laske, CEO of AVL China and expert on Asia's auto industry.
"Although the China sales results are definitely good news for Hyundai and Kia as a whole, the benefits from the anti-Japan movements aren't likely to last long," said Lee Sang Hyun, an analyst at NH Investment & Securities Co. "Also, Japanese automakers that resume production today will try to make up their losses."
The Nikkei 225 Stock Average dropped 0.97 per cent, or 86.11 points, to 8,777.19. The broader Topix Index plunged 1.23 per cent, or 9.06, to 728.07.
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