Japanese stocks crash 13% into bear market on radiation risk
Posted on 15 March 2011 with 1 comment from readers
Japanese stock indices crashed into bear market territory today as fears grew of a major radiation hazard from nuclear power stations crippled by the earthquake last week. If the wind blows in the direction of Tokyo radiation will quickly reach the city.
The Nikkei fell by more than 13 per cent below 8,500, the lowest since April 2009 and set for its worst two-day performance in 24 years. The broader Topix index also declined 13 per cent to below 750 and was set for the lowest close since March 2009 and its biggest one day decline since the stock market crash in October 1987. All the 33 industry groups in the Topix retreated.
The Nikkei 225 has fallen 23 percent from its high this year on February 21st signaling that the stock market of the world’s third largest economy is now in a bear market.
Oil, gold and silver held steady. The dollar and yen gained as safe haven assets.
Yesterday stock markets around the world followed Japan’s lead down and the same impact can be expected today. Indeed, investors might sell with more vigor realizing that the problems in Japan are likely to be long-lasting and not merely a repeat of the 1995 Kobe disaster.
US futures had the Dow about to lose 266 points.
1 Comment posted by readers:
Closed down around -10.55% ouch and it is about freakin time US futures finally dropped. They are down about -215 as of now. Let’s see how this works out for tomorrow. My guess is US stocks shed abut 250-300 points tomorrow.