This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12710555
The article has changed 14 times. There is an RSS feed of changes available.
Version 4 | Version 5 |
---|---|
Explosion at Japan nuclear plant | |
(40 minutes later) | |
Japanese shares have tumbled on the first trading day after the massive earthquake and tsunami that hit the country's northeast shore. | Japanese shares have tumbled on the first trading day after the massive earthquake and tsunami that hit the country's northeast shore. |
The benchmark Nikkei 225 Index fell 4.5%, while the broader Topix index was trading 6% lower. | The benchmark Nikkei 225 Index fell 4.5%, while the broader Topix index was trading 6% lower. |
At one point the Nikkei dropped by almost 6%, knocking more than $150bn off its total market value. | At one point the Nikkei dropped by almost 6%, knocking more than $150bn off its total market value. |
The Bank of Japan will inject 15 trillion yen ($183bn; £114bn) into the banking system to stabilise markets. | The Bank of Japan will inject 15 trillion yen ($183bn; £114bn) into the banking system to stabilise markets. |
Immediately after the quake, the central bank pledged to "do its utmost" to limit its impact, including providing liquidity to money and banking markets. | Immediately after the quake, the central bank pledged to "do its utmost" to limit its impact, including providing liquidity to money and banking markets. |
The deadly quake and subsequent tsunami hit Japan just before the markets closed on Friday. | The deadly quake and subsequent tsunami hit Japan just before the markets closed on Friday. |
"The recent major earthquake is bound to exert downward pressure on Japanese equities as a whole over the near term," Nomura said in a note to investors. | "The recent major earthquake is bound to exert downward pressure on Japanese equities as a whole over the near term," Nomura said in a note to investors. |
Elsewhere in the region, the main markets have also fallen on Monday, though the declines were smaller than those seen in Japan. | Elsewhere in the region, the main markets have also fallen on Monday, though the declines were smaller than those seen in Japan. |
South Korea's Kospi share index slid 0.9%. Singapore's STI index shed more than 0.4% and Taiwan's main index dropped 0.8%. | South Korea's Kospi share index slid 0.9%. Singapore's STI index shed more than 0.4% and Taiwan's main index dropped 0.8%. |
Production troubles | Production troubles |
Japanese carmakers and electronics firms led the declines on Monday. | Japanese carmakers and electronics firms led the declines on Monday. |
Early trading was complicated because many sellers of shares struggled to find buyers. As a result, a number of stocks remained untraded once the markets had opened. | Early trading was complicated because many sellers of shares struggled to find buyers. As a result, a number of stocks remained untraded once the markets had opened. |
Shares of Toyota Motors, the world's biggest automaker, fell 8.9% after it suspend operations at all of its 12 Japanese factories. | Shares of Toyota Motors, the world's biggest automaker, fell 8.9% after it suspend operations at all of its 12 Japanese factories. |
Japanese factories account for 38% of Toyota's overall production. | Japanese factories account for 38% of Toyota's overall production. |
Honda, Japan's third-largest automaker, fell 9.1%. The company makes about a quarter of all its cars in Japan. | Honda, Japan's third-largest automaker, fell 9.1%. The company makes about a quarter of all its cars in Japan. |
Electronics companies including Hitachi and Toshiba also dropped, shedding more than 15%. | Electronics companies including Hitachi and Toshiba also dropped, shedding more than 15%. |
Japanese Economics Minister Kaoru Yosano was quoted by the Jiji news agency saying that he was keeping a close eye on the movement of Japan's currency, the yen, which has strengthened. | Japanese Economics Minister Kaoru Yosano was quoted by the Jiji news agency saying that he was keeping a close eye on the movement of Japan's currency, the yen, which has strengthened. |
Economists said that a stronger yen may make it harder for companies to sell their goods abroad, further hurting their earnings. | Economists said that a stronger yen may make it harder for companies to sell their goods abroad, further hurting their earnings. |
'Weakened Japan' | 'Weakened Japan' |
Analysts said that there were concerns about the speed with which Japan's economy could rebound from the problems. | Analysts said that there were concerns about the speed with which Japan's economy could rebound from the problems. |
Last month Japan was overtaken by China as the world's second-largest economy. | Last month Japan was overtaken by China as the world's second-largest economy. |
"In the short term, the market will almost surely suffer and stocks will plunge," said Koetsu Aizawa, economics professor at Saitama University. | "In the short term, the market will almost surely suffer and stocks will plunge," said Koetsu Aizawa, economics professor at Saitama University. |
"People might see an already weakened Japan, overshadowed by a growing China, getting dealt the finishing blow from this quake." | "People might see an already weakened Japan, overshadowed by a growing China, getting dealt the finishing blow from this quake." |
Some analysts have forecast that Japan's economy may lose as much as a percentage point in growth this year because of the quake. | Some analysts have forecast that Japan's economy may lose as much as a percentage point in growth this year because of the quake. |
Japan's economy contracted by a more-than-expected 1.3% in the final three months of 2010. | Japan's economy contracted by a more-than-expected 1.3% in the final three months of 2010. |
Rebuilding effort | Rebuilding effort |
However, while there are concerns about the short-term impact on the economy, there are industries where investors are looking to increase their holdings. | However, while there are concerns about the short-term impact on the economy, there are industries where investors are looking to increase their holdings. |
Shares in Japanese construction firms have surged in value on Monday as they are expected to play a central role in rebuilding the country in coming months. | Shares in Japanese construction firms have surged in value on Monday as they are expected to play a central role in rebuilding the country in coming months. |
Foreign firms have also been in focus, notably technology producers and carmakers, where shares have been gaining. | Foreign firms have also been in focus, notably technology producers and carmakers, where shares have been gaining. |
Investors, for example, are expecting an increase in orders for Korean goods because production has been suspended in many of Japan's factories. | Investors, for example, are expecting an increase in orders for Korean goods because production has been suspended in many of Japan's factories. |