Most Asian markets ended lower in nervous trading Thursday as Japan struggled to deal with the aftermath of a devastating earthquake, although hopes that the authorities may bring a radiation-leaking nuclear facility under control helped to trim stock losses.
The Nikkei 225 index in Tokyo headed down once again, 131.05 points, or 1.4%, to 8.962.67
Hong Kong’s Hang Seng Index stumbled 416.45 points, or 1.8%, to 22,284.40
Asian stock and currency markets were roiled in early trade as equities on Wall Street tumbled after the chairman of the Nuclear Regulatory Commission said the risk of radiation was more serious than Japanese officials had outlined in public, and recommended a "much larger radius" for evacuations.
But the markets recovered as the day progressed amid Japan’s latest attempt to cool down the reactors, with Japan’s Self Defense Forces dropping sea water on the overheated units Thursday morning.
The nation’s nuclear safety agency said power cables from an outside source would be made available in an initiative, which if successful, would offer a better chance of cooling the reactors.
Japanese stocks also owed the recovery to a steep retreat in the yen, after the Japanese currency rose to a record high of 76.25 to a U.S. dollar very early in Asia. The retreat came on expectation that Japanese authorities would intervene to support the dollar and protect the nation’s exporters from the impact of a stronger local currency.
Among major declining stocks, Canon Inc. dropped 3.3%, Toyota Motor Corp. shed 2.2%, Fanuc Ltd. gave up 4%, Fast Retailing Co. slid 3.1% and Mitsubishi UFJ Financial Group sank 4.7%.
Tokyo Electric Power Co., operator of the troubled nuclear power facility, fell 13.4%, bringing this week’s total losses so far to 62.4%.
Uranium miners resumed their tumble after Wednesday’s recovery in Australia, with Paladin Energy Ltd. slumping 9.5% and Extract Resources Ltd. falling 23.2% on news China has halted approvals for new nuclear power plants pending changes to safety standards.
Building materials stocks were hit by the slump in U.S. housing starts, with James Hardie Industries SE losing 1%. Data released Wednesday showed U.S. home construction fell 22.5% in February.
In Seoul, shipbuilders rose on hopes for new orders after Samsung Heavy Industries Co. late Wednesday said it received a 1.25-trillion-won ($1.1 billion U.S.) order to build two drilling ships for an unidentified U.S. firm. Samsung Heavy added 1.8%, while Hyundai Heavy Industries rose 3.9%.
In foreign-exchange trade, the U.S. dollar bounced back against the yen after its record-setting fall Thursday morning. More recently, it was buying ¥78.97.
CHINA
China’s suspension of approvals for new nuclear power plants pushed non-nuclear energy producers higher in a downbeat Shanghai market.
The Shanghai CSI 300 Index subtracted 51.10 points, or 1.6%, to 2,942.88.
China Yangtze Power Co. rose 3.8% and Huaneng Power International Inc. rose 1.1%.
In other markets:
Taiwan’s Taiex Index fell back 41.89 points, or 0.5%, to 8,282.69
Korea’s Kospi Index inched up 1.06 points to 1,959.03
Singapore’s Straits Times Index docked 28.12 points, or 1%, to 2,942.88
New Zealand’s NZX 50 improved 2.79 points, or 0.1%, to 3,329.59
Australia’s S&P/ASX 200 lost 2.90 points, or 0.7%, to 4,555.30
