China-dependent Japan stocks drop on boycott over wastewater

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Chinese chat pages have been flooded with posts about boycotting Japanese products, including on Weibo, one of the country’s largest social media platforms.

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 nuclear plant. Tokyo-based cosmetics firm Shiseido fell as much as 3.3% to a five-month low, on a day when the broader share market gained. Its revenue from China accounts for 30% of the total, according to Bloomberg-compiled data.

” The reaction from investors reflects public worries, even though the International Atomic Energy Agency said the move is in line with global safety standards and would have a negligible impact on people and the environment. 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.

 

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