Companies involved in nuclear power and exporters are hardest hit as investors react to damage caused by earthquake
The Japanese stock market tumbled on Monday as investors reacted to the impact of Friday’s earthquake and tsunami, including the nuclear emergency in the north east of the country.
Following record trading levels, the Nikkei 225 Index closed down 6.2 percent, with companies involved in nuclear power and exporters experiencing big falls.
Tokyo Electric Power Company, the operator of the damaged Fukushima nuclear power plant, fell by 24 percent. Hitachi and Toshiba, which make nuclear power technology, both sank 16 percent.
Car manufacturers also suffered big losses after they halted nearly all production at their plants because of disruption to their supply chains. Toyota dropped 8 percent, Honda slid 6.5 percent and Nissan fell 9.5 percent.
Construction companies were the only sector to perform well, as investors looked toward the reconstruction work that will take place following the quake. Kajima soared 22 percent and Nishimatsu Construction climbed 19 percent.
On Sunday Japan’s financial services minister Shozaburo Jimi announced that the market would open as normal despite the emergency situation in some parts of the country.
In a statement, he said the Financial Services Agency would ‘rigidly monitor the markets to prevent any unfair transactions that take advantage of the disaster.’
