Mar15, 2011 18:13:33
TOKYO, March 15 (Xinhua) -- Tokyo stocks booked their largest one-day fall Tuesday since the collapse of Lehman Brothers Holdings Inc., with the key Nikkei stock index plunging 10.55 percent as Japan's growing nuclear crisis spurred panic selling.
A heightened state of fear rattled the markets Tuesday after Japanese Prime Minister Naoto Kan said that following a hydrogen explosion at an earthquake-stricken nuclear power plant in Fukushima Prefecture, there was a high risk of radiation leaking into the atmosphere.
Four of the complex's six reactors have been damaged by explosions and Kan urged citizens living within a 30-kilometer radius of the plant to stay indoors and keep windows and doors shut.
Following news that radiation levels had been detected in the Tokyo region following the reactor's containment unit being damaged, brokers said that was all the news needed for panicked investors to hit the sell button and take flight from risky assets.
"It's panic selling. It's not only foreign investors -- everybody just wants to dump shares," said one local analyst.
"Panic selling started with concerns about the safety of the nuclear power plant and now stock markets around the world are being affected by Japan's nuclear crisis," added a Tokyo-based portfolio manager.
The 225-issue Nikkei Stock Average fell 1,015.34 points to close at 8,605.15, marking the first time the index has ended more than 1,000 points lower since Oct. 16, 2008, when the Lehman shock pummeled global markets.
Tuesday's close marked the third worst one-day plunge in the Nikkei's history and the market's massive losses follow a 6.18 percent drop logged Monday. The index has fallen nearly 17 percent in just two days.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange lost 80.23 points, or 9.47 percent, to close at 766.73.
"Even if the nuclear power plant woes calm down, if the power outage by Tokyo Electric Power lasts for a half year or longer, its impact on the Japanese economy is unimaginable," said Fumiyuki Nakanishi, general manager at SMBC Friend Securities Co.
The power outages have severely disrupted transportation systems in the Kanto region and many businesses in the greater Tokyo region have suspended work and sent employees home and some, based on the nuclear crisis, are sending their workers out of Tokyo and even to foreign offices.
Stocks related to nuclear power were dumped Tuesday, with Tokyo Electric Power Co. operator of the stricken plants in Fukushima prefecture falling by the daily allowable limit of 24.7 percent to 1,221 yen, a level not seen since November 1984.
Toshiba Corp., which delivered nuclear plant facilities at the troubled plant, plunged 19.5 percent to 331 yen, also falling by the daily limit and Hitachi Ltd., which provides nuclear power generation systems, dropped 13 percent.
Mitsubishi Heavy Industries Ltd., a developer of nuclear power plants, meanwhile tumbled 11 percent.
A broad range of issues fell with Sony losing 8.9 percent to 2, 324 yen due to the firm halting some of its operations and Mitsubishi Estate fell 12 percent to 1,335 yen on fears a lengthy power outage will hamper industrial activity.
Mizuho Financial Group was another notable 10-digit decliner, falling 10 percent to close at 130 yen.
Japan's central bank on Tuesday pumped 8 trillion yen (98 billion U.S. dollars) into currency markets today, in addition to yesterday's massive cash injection, in a bid to secure the nation' s financial liquidity.
Trading volume on Tuesday jumped to 5.77 billion shares on the Tokyo Exchange's First Section, up from Monday's volume of 4.88 billion shares, with declining stocks outnumbering advancing ones by 1,637 to 34.
A heightened state of fear rattled the markets Tuesday after Japanese Prime Minister Naoto Kan said that following a hydrogen explosion at an earthquake-stricken nuclear power plant in Fukushima Prefecture, there was a high risk of radiation leaking into the atmosphere.
Four of the complex's six reactors have been damaged by explosions and Kan urged citizens living within a 30-kilometer radius of the plant to stay indoors and keep windows and doors shut.
Following news that radiation levels had been detected in the Tokyo region following the reactor's containment unit being damaged, brokers said that was all the news needed for panicked investors to hit the sell button and take flight from risky assets.
"It's panic selling. It's not only foreign investors -- everybody just wants to dump shares," said one local analyst.
"Panic selling started with concerns about the safety of the nuclear power plant and now stock markets around the world are being affected by Japan's nuclear crisis," added a Tokyo-based portfolio manager.
The 225-issue Nikkei Stock Average fell 1,015.34 points to close at 8,605.15, marking the first time the index has ended more than 1,000 points lower since Oct. 16, 2008, when the Lehman shock pummeled global markets.
Tuesday's close marked the third worst one-day plunge in the Nikkei's history and the market's massive losses follow a 6.18 percent drop logged Monday. The index has fallen nearly 17 percent in just two days.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange lost 80.23 points, or 9.47 percent, to close at 766.73.
"Even if the nuclear power plant woes calm down, if the power outage by Tokyo Electric Power lasts for a half year or longer, its impact on the Japanese economy is unimaginable," said Fumiyuki Nakanishi, general manager at SMBC Friend Securities Co.
The power outages have severely disrupted transportation systems in the Kanto region and many businesses in the greater Tokyo region have suspended work and sent employees home and some, based on the nuclear crisis, are sending their workers out of Tokyo and even to foreign offices.
Stocks related to nuclear power were dumped Tuesday, with Tokyo Electric Power Co. operator of the stricken plants in Fukushima prefecture falling by the daily allowable limit of 24.7 percent to 1,221 yen, a level not seen since November 1984.
Toshiba Corp., which delivered nuclear plant facilities at the troubled plant, plunged 19.5 percent to 331 yen, also falling by the daily limit and Hitachi Ltd., which provides nuclear power generation systems, dropped 13 percent.
Mitsubishi Heavy Industries Ltd., a developer of nuclear power plants, meanwhile tumbled 11 percent.
A broad range of issues fell with Sony losing 8.9 percent to 2, 324 yen due to the firm halting some of its operations and Mitsubishi Estate fell 12 percent to 1,335 yen on fears a lengthy power outage will hamper industrial activity.
Mizuho Financial Group was another notable 10-digit decliner, falling 10 percent to close at 130 yen.
Japan's central bank on Tuesday pumped 8 trillion yen (98 billion U.S. dollars) into currency markets today, in addition to yesterday's massive cash injection, in a bid to secure the nation' s financial liquidity.
Trading volume on Tuesday jumped to 5.77 billion shares on the Tokyo Exchange's First Section, up from Monday's volume of 4.88 billion shares, with declining stocks outnumbering advancing ones by 1,637 to 34.
Posts
No comments:
Post a Comment