Shares of Japanese companies that are especially reliant on China demand plunged after users online in Asia’s biggest economy called for a boycott over the release of treated wastewater from the wrecked Fukushima Dai-ichi nuclear power plant.
Tokyo-based cosmetics firm Shiseido Co fell 2.6 percent to a nine-month low, on a day when the broader TOPIX gained 1.5 percent.
Its revenue from China accounts for 30 percent of the total, data compiled by Bloomberg showed.
Photo: AFP
Shiseido’s local competitors, including Pola Orbis Holdings Inc and Kose Corp, also declined, while department store Takashimaya Co dropped more than 3 percent, and Don Quijote operator Pan Pacific Holdings Corp fell more than 4 percent.
China last week said that it would suspend seafood imports from Japan, and Chinese chat pages have been flooded with posts about boycotting Japanese products.
“The Chinese government’s reaction to the treated water has been surprisingly severe,” Mito Securities Co chief fund manager Hajime Sakai said. “Local media reports of cancellations of Japan tours and boycotts have raised concerns that the impact on inbound business may spread unexpectedly as China prepares for the travel demand season.”
Signs that consumers are steering clear of Japanese products are especially disappointing for companies that had expected their sales to be bolstered by China’s resumption of group tours to its neighboring nation earlier this month.
However, the share sell-off may be short-lived considering that China’s boycotts have not lasted long in the past, Asymmetric Advisors Pte strategist Amir Anvarzadeh said.
For now, the boycott is a hot topic online in China. One post on Sina Weibo lists dozens of Japanese brands to avoid buying, including Shiseido, Panasonic, Uniqlo, Mitsubishi, Aeon and Nomura.
The post has received more than 10,000 “likes” since it was published on Thursday last week.
Yet despite the online protests, some analysts say that demand for Japanese products can be expected return after a while.
“Japan’s products are highly sought after by the Chinese tourists, and the weak yen is only going to make them more attractive,” Saxo Capital Markets market strategist Charu Chanana said.
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