The effects of Kobe steel data fabrication

Shares of embattled Kobe Steel Ltd has fallen to its lowest level in nearly five years on Monday, as the scandal of Japanese steelmakers has led to financial and legal consequences for hundreds of companies.

Kobe City Chief Executive Kawasaki on Friday revealed that about 500 companies have received incorrect certified products, more than twice their earlier calculations, confirming the widespread misconduct of steelmakers.

Shares of Japan’s third-largest steelmaker’s share price fell 0.12% at 804 yen by the end of the morning session after hitting 774.0 yen, the lowest point since December 11, 2012. Tokyo stock market rose 0.68%, reaching 21-year high.

As the Japanese steelmakers trying to seize the data tampering, the earlier statement may back to ten years, so there is no security problems to surface.

The revelations over the past week rippled through supply chains across the world as companies from famous Japanese bullet trains operators to the world’s biggest aircraft maker, Boeing Co,, were ensnared in the scandal.

Source:Reuters