- Title: JAPAN: Markets narrow losses after nuclear plant spraying
- Date: 18th March 2011
- Summary: TOKYO, JAPAN (MARCH 17, 2011) (REUTERS) VARIOUS OF STOCK EXCHANGE EMPLOYEES WORKING VARIOUS OF STOCK INDICES AND PRICES ON ELECTRONIC BOARDS STOCK PRICES ON ELECTRONIC BOARD MORE OF EMPLOYEES AT WORK
- Embargoed: 2nd April 2011 13:00
- Keywords:
- Location: Japan, Japan
- Country: Japan
- Topics: Disasters / Accidents / Natural catastrophes,Finance
- Reuters ID: LVAC9RRM23RQSB5EFV01HZA6VP8I
- Story Text: Japan's broad TOPIX share index ended down 0.8 percent on Thursday (March 17), after a volatile session, amid a deepening nuclear crisis and following the yen's surge to an all-time high versus the dollar.
The yen spiked around 4 percent against the dollar, initially driven by speculation that Japanese insurers would have to repatriate funds to pay for massive claims following last Friday's 9.0 magnitude quake and the devastating tsunami it triggered.
That run-up set off a wave of stop-loss and options-related selling that sent the currency rocketing as far as 76.25 to the dollar on electronic trading platform in increasingly chaotic trading, before easing to around 79.25.
The full extent of the economic damage is yet to be known, with several coastal towns ravaged and production plants hampered by supply shortages. Power cuts have also hit several quake-affected towns.
"The extent is not known yet, but at first glance it is a much bigger calamity than the Kobe earthquake," Japan economics minister Kaoru Yosano said.
The 1995 Kobe quake, that hit Japan's industrial zone, caused $100 billion in damage - the most expensive natural disaster in history.
Japan's Finance Minister Yoshihiko Noda blamed speculation for the spike in the yen and said he would closely watch market action. Markets usually interpret such comments as a reminder that the authorities could intervene to curb the currency.
Ten-year Japanese government bond futures finished the regular session down 0.02 point after pulling back from earlier highs as stocks reversed some of their losses.
Speculators braced for possible currency intervention following the yen's surge or further monetary easing by the Bank of Japan in the wake of the yen's rally.
Hundreds of billions of dollars have been wiped off global stock markets since Japan's northeast coast was devastated by an earthquake and tsunami on Friday (March 11) and several nuclear reactors began overheating, triggering radiation fears. - Copyright Holder: REUTERS
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