Tokyo stocks suffered their biggest fall in more than two years Monday as Japan’s most powerful earthquake on record Friday left a trail of destruction, forcing authorities to cope with a nuclear emergency and estimates of thousands of deaths and billions of dollars in insurance losses.
But several metal and building-materials stocks in Asia edged higher on hopes for reconstruction opportunities in Japan, while coal shares climbed and uranium miners plunged on worries about prospects for nuclear-power projects.
The Nikkei 225 index in Tokyo collapsed 633.94 points, or 6.2%, to 9.620.49
Hong Kong’s Hang Seng Index regained 96.10 points, or 0.4%, to 23,249.80.
Investors were also looking at the ripple effects of the weekend euro-zone debt accord and the continuing crisis in Libya, particularly the Arab League’s support for a no-fly zone over the country.
The yen, which rose to a four-month high against the U.S. dollar in early trade on hopes for fund repatriation into Japan, fell back sharply amid heavy selling in the Tokyo stock and bond markets as well as the Bank of Japan’s offer to inject a record 15 trillion yen ($183 billion U.S.) into the money markets, aimed at securing market confidence.
Leading the declines, shares of Tokyo Electric Power Co. plummeted 23.6% after an explosion hit the No. 3 nuclear reactor building Monday at the company’s Daiichi plant in Fukushima Prefecture, on top a similar explosion at No. 1 reactor over the weekend.
Insurers also plunged on a selloff in anticipation of huge claims from the quake, with Dai-ichi Life Insurance Co. falling 18.9% and Tokio Marine Holdings Inc. sliding 12.4%. Several exporters, banks and commodity linked shares fell 5% or more.
Still, some analysts were tipping Japan stock declines to slow.
Among steel makers, Posco soared 8.3% in Seoul and Angang Steel Co. rose 4.8% in Hong Kong and 2.6% in Shenzhen; among other construction-related stocks, Anhui Conch Cement Co. rose 2.2% and Asia Cement Corp. added 2.1% in Taipei.
Shares of uranium miners led the losses in Sydney, with Paladin Energy Ltd. falling 16.5% and Energy Resources of Australia Ltd. dropping 12.2%. Among coal miners, China Coal Energy Co. rose 1.6% in Hong Kong
Refining shares broadly outperformed in the region, receiving a boost from crude-oil’s sharp recent fall and the closure of a large refining capacity in Japan. S-Oil Corp. soared 12.9% in Seoul, China Petroleum & Chemical Corp. added 2.2% in Hong Kong
In foreign-exchange markets, the U.S. dollar rose to 81.83 yen, after touching a four-month low of ¥80.60 earlier in Asia. That compared with ¥81.83 in late New York trade on Friday. The dollar/yen pair was helped off lows by news that the Bank of Japan injected ¥18 trillion of funds into the market -- ¥15 trillion in same-day funds through three separate operations plus ¥3 trillion in repurchase agreements -- to help ensure smooth operations in the financial system.
CHINA
Trading in Chinese shares was choppy as market participants weighed the implications of the Japanese disaster, while lower-than-expected new yuan loan data for February indicated that Beijing’s control on credit is tighter than anticipated.
The Shanghai CSI 300 Index inched up 15.54 points, or 0.5%, to 3,262.92
The region’s steel makers and thermal coal miners outperformed on hopes a shutdown of parts of Japan’s nuclear-power network would make thermal coal one of the major beneficiaries. But uranium companies fell as the problems in Japan stoked concerns about nuclear power’s longer-term viability around the world.
In other markets;
Taiwan’s Taiex Index dropped 47.80 points, or 0.6%, to 8,520.02
Korea’s Kospi Index rallied 15.69 points, or 0.8%, to 1,971.23
Singapore’s Straits Times Index let go of 12.63 points, or 0.4%, to 3,030.86
New Zealand’s NZX 50 stumbled 21.64 points, or 0.6%, to 3,361.20
Australia’s S&P/ASX 200 went lower 18.40 points, or 0.4%, to 4,626.40
