JAPAN: Stock futures plunge after PM's comments on radiation levels at stricken nuclear plant
Record ID:
462902
JAPAN: Stock futures plunge after PM's comments on radiation levels at stricken nuclear plant
- Title: JAPAN: Stock futures plunge after PM's comments on radiation levels at stricken nuclear plant
- Date: 16th March 2011
- Summary: TOKYO, JAPAN (MARCH 15, 2011) (REUTERS) VARIOUS OF FOREX TRADERS AT WORK YEN/DOLLAR LEVEL ON SCREEN MORE OF TRADERS AT WORK STOCK PRICES ON BOARD MORE OF TRADERS
- Embargoed: 31st March 2011 13:00
- Keywords:
- Location: Japan, Japan
- Country: Japan
- Topics: Disasters / Accidents / Natural catastrophes,Economic News
- Reuters ID: LVABQIDB3ONO5GEUJLYVP3F7CNG2
- Story Text: Japanese stocks dropped 7 percent to a two-year low and futures prices plunged on Tuesday (March 15) as the country's prime minister said radiation levels at a stricken nuclear plant had become high, deepening concerns about the economic toll of the disaster.
After Naoto Kan's comments, Nikkei equity futures prices dropped sharply, triggering a circuit breaker to halt trade. When it resumed, the futures were down more than 12 percent on the day. He also said the possibility of leakage had increased.
Japanese government bond prices rose as equities fell. The pressure on Japan's already bleak fiscal situation in any reconstruction was likely to be high, with Japan's yield curve steepening some 10 basis points since Friday.
Unlike Monday (March 14), when construction stocks rose, none of the 225 constituents of the benchmark Nikkei average were up on Tuesday.
Four explosions, including two on Tuesday, have occurred at the Fukushima Daiichi nuclear complex in Japan's ravaged northeastern coast since the magnitude 9.0 quake on Friday (March 11), raising concerns about radiation leakage and the longer-term stability of power supply.
The broad TOPIX share index slumped 7 percent by the regular midday break to 787.90, after posting the biggest decline since the 2008 financial crisis on Monday on record volume.
So far this week, the index is down nearly 14 percent and has shed around 528 billion US dollars in market capitalisation.
The Nikkei share average dropped 6.5 percent by the midday break to 8,999.73. The sharp decline in the futures market will pull the cash market lower when it resumes trade.
Chart support for the Nikkei index lies at around 8,800 -- the low from September 2010.
The yen was steady at 81.72 per dollar, relatively stable in the face of the equity market selloff. Traders were on alert for signs of Japanese investor capital repatriation that could push up the yen similar to what happened after the 1995 Kobe earthquake. - Copyright Holder: REUTERS
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