Japanese stock market suffers earthquake aftershock

The Nikkei index lost over 6 per cent of its points prompting an intervention from the central bank.

By Francisco Perez Published 14 March 2011

The Japanese stock market was also hit by the aftermath of the earthquake and tsunami which hit the island last Friday. Following a session of heavy sell-off, Nikkei closed after having lost 6.18 per cent of its total points.

Manufacturing companies companies such as Canon, Toyota and Sony suffered losses of 6 up to 9 per cent in the value of their shares. Meanwhile, amidst news of an explosion in the second reactor building at the Fukushima Daiichi nuclear plant, Tokyo Electric Power, its operator, saw a 23.6 per cent dive.

The Bank of Japan (BoJ) offered 15 trillion yen (£114 bn) injection into the banking system to reassure investors, having previously pledged to prevent possible speculator profiteering.

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Tags: Japan earthquake

1 comment

Wed, 2011-03-16 22:12 — Tom (not verified)

Despite this BOJ intervention, odds are it won't realistically help for several reasons.

Interest rates and lending have been extremely low for years now. The govt.'s propping up zombie banks and firms will only have more of a backlash with the earthquake and nuclear plant problems.

The global market is a mix of data, people, emotions and perceptions. The govt. or key business people can put out what they say and what appears at first to be facts. But we all know that perceptions can drive the market instantly in the opposite direction.

Unfortunately, the Japanese public is growing more skeptical of the govt.'s information. Also, since so much of their infrastructure is now damaged, how could this not have global remifications?