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Japan's stocks plunge on 1st trade day after quake
Source: Agencies |
March 14, 2011, Monday
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THE Tokyo stock market spiraled downward today, its first business day after an earthquake and tsunami of epic proportions caused tens of billions of dollars in damage and lay waste to cities along the northeast coast. Other Asian markets were mostly down.
The benchmark Nikkei 225 stock average fell 464.88 points, or 4.5 percent, to 9,789.55. Worries about the economic impact of Friday's disaster, including massive power shortages, triggered a broad sell-off that hit all sectors. The broader Topix index was down 5.4 percent.
Shares of several major companies were overwhelmed with sell orders and had yet to trade. Among those, the Tokyo Electric Power Co. was set to fall by double digits as it struggled with malfunctioning nuclear reactors and a power shortage that led the company to announce rolling blackouts in parts of Tokyo and its suburbs.
Export stocks across the board registered staggering losses as investors dumped shares over concerns about economic production and consumption. Toshiba Corp. plummeted 16.3 percent; Hitachi Ltd. tumbled 15.2 percent; and Sony Corp. lost 7.6 percent.
Auto makers were hit particularly hard after halting production at assembly plants in areas hit by the 8.9-magnitude earthquake, the strongest ever to hit Japan. One Honda worker died after being crushed by a collapsing wall.
Toyota Motor Corp., the world's biggest automaker, was down 7.2 percent, while Honda Motor Corp. lost 3.8 percent; Nissan Motor Co. Ltd. dropped 8.5 percent; Mitsubishi Motors Corp. fell 9 percent; and Isuzu Motors Ltd. lost 8.9 percent.
Insurance companies also suffered sharp drops. Tokio Marine Holdings Inc. was down 16 percent. Fast Retailing Co., operator of Japan's biggest clothing store, lost 4.7 percent.
Meanwhile, industrial and materials companies rose on expectations that they will benefit from Japan's rebuilding efforts. Japanese construction company Kajima Corp. soared 37.2 percent; Nishimatsu Construction Co. Ltd. got a 22.8 percent boost.
The Bank of Japan injected a record 7 trillion yen (US$85.5 billion) into money markets to try to defend the already fragile economy. By flooding the banking system with cash, the central bank hopes banks will continue lending money and meet the likely surge in demand for post-earthquake funds.
A one-day policy meeting of the central bank is scheduled for later today.
The prospect of falling oil demand from Japan sent crude oil prices down US$1.52 to US$99.64 a barrel. In addition to the earthquake, oil prices fell after a scheduled day of protests in Saudi Arabia only drew a few hundred people. Oil traders have been worried the violence in the Middle East and North Africa would spread to the world's No. 1 oil exporter.
The benchmark Nikkei 225 stock average fell 464.88 points, or 4.5 percent, to 9,789.55. Worries about the economic impact of Friday's disaster, including massive power shortages, triggered a broad sell-off that hit all sectors. The broader Topix index was down 5.4 percent.
Shares of several major companies were overwhelmed with sell orders and had yet to trade. Among those, the Tokyo Electric Power Co. was set to fall by double digits as it struggled with malfunctioning nuclear reactors and a power shortage that led the company to announce rolling blackouts in parts of Tokyo and its suburbs.
Export stocks across the board registered staggering losses as investors dumped shares over concerns about economic production and consumption. Toshiba Corp. plummeted 16.3 percent; Hitachi Ltd. tumbled 15.2 percent; and Sony Corp. lost 7.6 percent.
Auto makers were hit particularly hard after halting production at assembly plants in areas hit by the 8.9-magnitude earthquake, the strongest ever to hit Japan. One Honda worker died after being crushed by a collapsing wall.
Toyota Motor Corp., the world's biggest automaker, was down 7.2 percent, while Honda Motor Corp. lost 3.8 percent; Nissan Motor Co. Ltd. dropped 8.5 percent; Mitsubishi Motors Corp. fell 9 percent; and Isuzu Motors Ltd. lost 8.9 percent.
Insurance companies also suffered sharp drops. Tokio Marine Holdings Inc. was down 16 percent. Fast Retailing Co., operator of Japan's biggest clothing store, lost 4.7 percent.
Meanwhile, industrial and materials companies rose on expectations that they will benefit from Japan's rebuilding efforts. Japanese construction company Kajima Corp. soared 37.2 percent; Nishimatsu Construction Co. Ltd. got a 22.8 percent boost.
The Bank of Japan injected a record 7 trillion yen (US$85.5 billion) into money markets to try to defend the already fragile economy. By flooding the banking system with cash, the central bank hopes banks will continue lending money and meet the likely surge in demand for post-earthquake funds.
A one-day policy meeting of the central bank is scheduled for later today.
The prospect of falling oil demand from Japan sent crude oil prices down US$1.52 to US$99.64 a barrel. In addition to the earthquake, oil prices fell after a scheduled day of protests in Saudi Arabia only drew a few hundred people. Oil traders have been worried the violence in the Middle East and North Africa would spread to the world's No. 1 oil exporter.
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