Quake selloff wipes $287 billion off Tokyo stock market.
Japan plunges but the rest global stock market is up as it is expected that they going to earn money by helping out Japan out from their disaster!! In KLCI, WTK the wood exporter stock is rising upwards since the disaster will mean that alot of wood is needed for rebuilding the nation. The same also occurred to Japanese construction firm that held steady to the falling NIKKEI.
SYDNEY (MarketWatch) — Japanese shares plunged in Monday’s session, chalking up their worst one-day performance in more than two years, as investors attempted to assess the damage from last week’s massive earthquake.
Japan’s blue-chip Nikkei Stock Average (JP:NI225 9,620, -633.94, -6.18%) ended the day down 6.2% at 9,620.49, a move that took the index back to a level not seen since early November.
According to FactSet data, the one-day drop for the Nikkei exceeded a 5.6% plunge on Dec. 12, 2008, but didn’t quite match a 6.4% one-day drop made on Dec. 2 in the same year, as global markets collapsed at the height of the financial crisis.
The broader Topix fell 7.5% to 846.96.
The selloff was broad-based, with Toyota Motor Co. (TM 80.30, -5.35, -6.25%) (JP:7203 3,310, -285.00, -7.93%) closing down 7.9%, Sony Corp. shares(SNE 30.67, -2.78, -8.31%) (JP:6758 2,550, -256.00, -9.12%) ending the day down 9.1%, and Mitsubishi Motors Corp.(JP:7211 97.00, -13.00, -11.82%) (MMTOF 1.30, -0.07, -5.11%) tumbling 11.8%.
“Reports over the weekend point to greater damage than initially anticipated,” noted strategists at Nomura Securities.
Deaths from the tragic quake and tsunami waves were expected to exceed 10,000, and the risk of major radiation from a nuclear-plant meltdown remained a threat Monday, as officials struggled to control damage to its nuclear reactors.
A reactor at the nation’s Fukushima Daiichi nuclear power plant exploded due to a buildup of hydrogen, though Japan’s chief Cabinet secretary said the blast was unlikely to affect the vital core container. See report on nuclear reactor blast.
Several Japanese companies with nuclear-related businesses fell heavily in Tokyo trading on Monday, with Mitsubishi Heavy Industries Ltd.(JP:7011 322.00, -36.00, -10.06%) (MHVYF 4.00, -0.29, -6.76%) ending down 10.1%, Kobe Steel Ltd.(JP:5406 190.00, -13.00, -6.40%) (KBSTF 0.00, 0.00, 0.00%) falling 6.4%. Hitachi Ltd. (JP:6501 414.00, -80.00, -16.19%) crashing 16.2%, Toshiba Corp.(JP:6502 411.00, -80.00, -16.29%) closing down 16.3%, and Japan Steel Works Ltd.(JP:5631 643.00, -150.00, -18.92%) diving 18.9%.
“Concern over the safety of nuclear power would likely weigh on construction of nuclear power plants in Japan and overseas,” said analysts at Citigroup.
Following the explosion at the No. 3 reactor at Tokyo Electric Power Co.’s(JP:9501 1,621, -500.00, -23.57%) Fukushima Daiichi nuclear power plant, concerns were also growing not just about radiation, but also about power supply for the country. Tepco shares fell 23.6% in Monday trade.
Power rationing was in place Monday, and Royal Bank of Scotland strategists said power outages were a key factor that could damage the Japanese economy, as businesses won’t readily be able to return to normal.
“It is already reported that several factories and assembling companies in those areas, such as Sony, will face serious shortage of electric power,” they said.
Nonlife insurance firms fell in Tokyo on Monday after Friday’s devastating earthquake and subsequent tsunami. Shares of Tokio Marine Holdings Inc.(JP:8766 2,200, -312.00, -12.42%) (TKOMF 0.00, 0.00, 0.00%) dropped 12.4%.
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