Island angst hurts Japanese companies

Continuing anti-Japanese protests have forced Japanese companies to shut down operations in parts of China, Financial Times reported. The protests, fueled by Japan’s controversial nationalization of contested islands in the East China Sea, continued on Monday following a weekend of violence and property destruction. Many Japanese outfits suspended operations to ensure employee safety. Japanese clothier Fast Retailing (9983.TYO, FR7.FRA) closed branches of its Uniqlo store in Beijing, while Japanese electronics company Canon (CAJ.NYSE, 7751.TYO) suspended production in a number of factories. Nationalist fervor is also denting Japanese car sales in China, The Wall Street Journal reported. Toyota (TM.NYSE, 7203.TYO), Nissan (7201.TYO) and Honda (HMC.NYSE, 7267.TYO) have each suffered a reduction in unit sales this year. China sales made up 11%, 17% and 20% of the three companies’ total sales in 2011, respectively.