- Title: JAPAN: Stocks rebound despite continuing nuclear worries
- Date: 17th March 2011
- Summary: TOKYO, JAPAN (MARCH 16, 2011) (REUTERS) EXTERIOR OF TOKYO STOCK EXCHANGE VARIOUS OF STOCK EXCHANGE OFFICIALS AT WORK VARIOUS OF STOCK INDICES ON ELECTRONIC BOARD STOCK PRICES IN ELECTRONIC BOARD NIKKEI AVERAGE SHOWING RISE CAMERAMAN FILMING STOCK PRICES (SOUNDBITE) (English) THOMSON REUTERS, JAPAN BUREAU CHIEF, NATHAN LAYNE, SAYING: "Obviously the short-term impact is going to be huge. A huge part of north-east coast of Japan has been devastated by this, the early estimates from analysts and economists is a 180 billion USD in damages. Of course the crisis is escalating if you throw in the radiation scare and people from overseas are going to stop coming to Japan, the hit on tourism, the obviously the number (of damage costs) could go up from here." VARIOUS OF FOREIGN EXCHANGE TRADERS AT WORK YEN/DOLLAR RATE ON ELECTRONIC BOARD MORE OF TRADERS AT WORK YEN/DOLLAR RATE ON SCREEN MORE OF TRADERS AT WORK
- Embargoed: 1st April 2011 13:00
- Keywords:
- Location: Japan, Japan
- Country: Japan
- Topics: Disasters / Accidents / Natural catastrophes,Economic News
- Reuters ID: LVADEAXYWZ0XKIH9H9YBLTZ0LLQ1
- Story Text: Japanese stocks rallied more than 6 percent on Wednesday (March 16) after their worst two-day selloff since the 1987 crash, with some investors picking up battered shares even as many said the risk of a worsening nuclear crisis could hit the market further.
Traders said the gains were likely driven by market players, such as hedge funds, covering short positions in futures, as well as some buying by portfolio managers after the two-day battering down stocks down more than 16 percent.
Japan's Nikkei average was up 6.4 percent at 9,152 after having plunged 10.6 percent on Tuesday but was still down 11 percent from Friday's close. Osaka Nikkei futures were up 4.5 percent at 9,030. The broader TOPIX pushed up 6.5 percent to 816.
"Obviously the short-term impact is going to be huge. A huge part of north-east coast of Japan has been devastated by this, the early estimates from analysts and economists is a 180 billion USD in damages. Of course the crisis is escalating if you throw in the radiation scare and people from overseas are going to stop coming to Japan, the hit on tourism, the obviously the number (of damage costs) could go up from here," said Thomson Reuters Japan Bureau Chief Nathan Layne.
The yen dropped across the board, with the dollar pushing up to 81.10 yen but still not far from a record low of 79.75 hit against the Japanese currency in 1995. The Australian dollar jumped nearly 1 percent against the yen.
Traders are still keeping an eye out for Japanese companies and insurers selling their hefty foreign asset holdings and repatriate funds to cover costs from the nuclear crisis, quake and tsunami, a factor that could drive the yen higher.
Hedge funds were cited as aggressive sellers of Nikkei futures on Tuesday (March 15) as the market panicked over reports of leaking radiation from the stricken Fukushima nuclear reactor and higher radiation readings near Tokyo. - Copyright Holder: REUTERS
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