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| Explosion at Japan nuclear plant | Explosion at Japan nuclear plant |
| (about 2 hours 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 6% to 9,632.18, while the broader Topix index was trading 7.4% lower. | |
| That has knocked more than $150bn off the Nikkei's 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 2.1% after it suspended operations at all of its 12 Japanese factories. | |
| The automaker said production will be halted till at least 16 March, reducing output by 40,000 vehicles. | |
| 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. |