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 8 | Version 9 |
---|---|
Explosion at Japan nuclear plant | Explosion at Japan nuclear plant |
(about 1 hour later) | |
Japanese shares have tumbled on the first trading day after the massive earthquake and tsunami that hit the country's north-east shore. | Japanese shares have tumbled on the first trading day after the massive earthquake and tsunami that hit the country's north-east shore. |
Amid record share trading, the Nikkei index ended down 6.18% at 9,620 points. | |
Production was stopped at some of Japan's best-known companies, heavily denting their share prices. | Production was stopped at some of Japan's best-known companies, heavily denting their share prices. |
Meanwhile, the Bank of Japan tried to support the economy, saying it would inject 15 trillion yen ($183bn; £114bn) into the banking system. | |
European stocks also began the day lower, with German shares hit hardest. The main Dax index fell 1.3%, dragged lower by power companies and insurers. | |
The UK's FTSE 100 and France's Cac 40 indexes were down about 0.3%. | |
In Japan, carmaker Nissan was down by 9.5% after it shut all its plants, while Toshiba, whose products include semiconductors and nuclear reactors, fell 16%. | |
A Toshiba competitor, Hitachi, also fell 16% and shares in Tokyo Electric Power Company fell by 24%. | A Toshiba competitor, Hitachi, also fell 16% and shares in Tokyo Electric Power Company fell by 24%. |
Honda, Japan's third-largest carmaker, fell 9.1%. | Honda, Japan's third-largest carmaker, fell 9.1%. |
With production stopped in a number of major factories and therefore the demand for power reduced, the price of oil fell. | With production stopped in a number of major factories and therefore the demand for power reduced, the price of oil fell. |
Brent crude lost 2.4% to $111.16, a two-week low, while US light, sweet crude fell by $1.37 to $99.79. | |
But industrial and materials companies gained on hopes they will be in demand once Japan starts rebuilding. | But industrial and materials companies gained on hopes they will be in demand once Japan starts rebuilding. |
Construction company Kajima rose 17.9% and Nishimatsu Construction soared 21%. | Construction company Kajima rose 17.9% and Nishimatsu Construction soared 21%. |
Bank support | Bank support |
Early share trading was complicated because many sellers of shares struggled to find buyers. | Early share trading was complicated because many sellers of shares struggled to find buyers. |
As a result, a number of stocks remained untraded after the markets had opened. By the end 4.88bn shares had changed hands. | As a result, a number of stocks remained untraded after the markets had opened. By the end 4.88bn shares had changed hands. |
Immediately after the quake, the central bank pledged to "do its utmost" to limit its impact, including providing liquidity to money and banking markets. Details of the pledge, a 15 trillion yen cash injection, was released over the weekend. | Immediately after the quake, the central bank pledged to "do its utmost" to limit its impact, including providing liquidity to money and banking markets. Details of the pledge, a 15 trillion yen cash injection, was released over the weekend. |
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. |
Strong yen | Strong yen |
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. |
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. |
South Korea's Kospi index was up by 0.5%, although elsewhere in the region major markets were lower. Hong Kong's Hang Seng index as down by 0.4%. | South Korea's Kospi index was up by 0.5%, although elsewhere in the region major markets were lower. Hong Kong's Hang Seng index as down by 0.4%. |