Asian shares tumbled Tuesday as Tokyo’s stock benchmark plunged 10.6% on panic selling amid worries a possible Japanese nuclear catastrophe would further complicate and endanger the nation’s recovery from its worst-ever earthquake on record.
The Nikkei 225 index in Tokyo jettisoned 1,015.34 points, or 10.6%, to 8,605.15, pressured by news of explosions at Tokyo Electric Power Co.’s Fukushima Daiichi nuclear power plant’s No. 2 and No. 4 reactors, on top of previous blasts at the No. 1 and No. 3 reactors.
Coming on top of a 6.2% fall Monday, the performance is the Nikkei’s worst since its Oct. 16, 2008, drop of 11.4%, in the aftermath of the global financial crisis.
Investor wealth of $364 billion U.S. — 9.4% of the Tokyo stock exchange’s market capitalization — was wiped out during the session after Japanese Prime Minister Naoto Kan said there’s a high risk of elevated levels of radiation from the nuclear reactors and urged people within 30 kilometres of the plant to stay indoors.
Also, the Tokyo metropolitan government said radiation levels in the Japanese capital surged to 23 times the normal level Tuesday.
Ranking among the major losers in Tokyo, shares of Tokyo Electric Power Co. dropped 24.7%, Toshiba Corp. fell 19.5% and Fast Retailing Co. shed 17.5%.
The hefty losses in Tokyo also drove declines in other Asian markets, raising concerns about possibly wider global market fallout.
Hong Kong’s Hang Seng Index tumbled 667.63 points, or 2.9%, to 22,678.20
Shares of Ping An Insurance Group Co. of China sank 6.1% in Hong Kong on the insurer’s plan to raise $2.5 billion U.S. from a private placement.
In Sydney, shares of uranium miners and explorers extended Monday’s sharp falls, with Energy Resources of Australia Ltd. sliding 14.3% and Paladin Energy Ltd. shedding 17.5%.
Several steel and refining stocks that had risen the previous day also retreated amid worries about the scale of Japan’s nuclear fallout.
Posco fell 3.5% and S-Oil Corp. dropped 0.7% in Seoul, Bluescope Steel Ltd. declined 5.8% in Sydney.
Foreign-exchange markets saw choppy trade as Prime Minister Kan’s comments sparked a wave of selling in riskier currencies such as the Australian dollar.
The U.S. dollar dropped to a low of 81.21 yen, before bouncing and was last at ¥81.53, compared with ¥81.62 in late New York trade Monday. The euro was at ¥113.56 from ¥114.22, and at $1.3927 U.S. from $1.3993 U.S.
CHINA
Figuring among the major stock movers in the region were Chinese coal and gold miners, which retreated, tracking a fall in global oil and gold prices.
The Shanghai CSI 300 Index gave back 58.96 points, or 1.2%, to 3,203.96.
China Shenhua Energy Co. dropped 2.7% and Zijin Mining Group Co. lost 3.8% in Shanghai; in Hong Kong, they gave up 2% and 3.4%, respectively
China Petroleum & Chemical Corp. shed 2.3% in Hong Kong and 1.6% in Shanghai.
In other markets;
Taiwan’s Taiex Index dropped 285.24 points, or 3.4%, to 8,234.78
Korea’s Kospi Index stepped back 47.31 points, or 2.4%, to 1,923.92
Singapore’s Straits Times Index let go of 84.78 points, or 2.8%, to 2,946.08
New Zealand’s NZX 50 stumbled 47.06 points, or 1.4%, to 3,314.14
Australia’s S&P/ASX 200 went lower 97.70 points, or 2.1%, to 4,528.70
