| teedubya |
03-14-2011 10:17 PM |
Regional share markets have dived on fears that radiation will escape from a severely damaged nuclear reactor in Japan.
The Japanese share market's benchmark Nikkei index has slumped 13.6 per cent - the second day in a row of massive declines after a 6.2 per cent slide yesterday.
It is the worst two-day fall since the great stock market crash of October 1987.
Unlike yesterday, the Australian market has followed with a 2.7 per cent slide.
The worst falls on the Australian share market occurred just after 1:00pm (AEDT), soon after Japanese prime minister Naoto Kan tried to allay fears about the danger from the crippled Fukushima nuclear plant.
An explosion at the facility's No. 2 reactor now has authorities assuming the reactor container had been damaged.
Mr Kan told residents within 20km of the reactor to evacuate, and the prevailing winds are heading towards Tokyo, leading to a warning from the French embassy to its citizens in Japan that any nuclear fallout that escapes from the plant could reach Tokyo within 10 hours.
The call for calm from Mr Kan had the opposite effect on share markets, with the All Ordinaries index plummeting from around 4,680 before the comments to 4,582 at 2:47pm.
The ASX 200 was down 132 points to 4,494.
Between the Reserve Bank's rather dovish minutes and the Japanese nuclear fears, the Australian dollar plunged around a cent against the greenback, from 100.94 to 99.88 US cents.
Japan's benchmark Nikkei share index was already down 6.5 per cent at just under 9,000 before trade halted for its normal lunch break, which was before Mr Kan made his comments.
Since lunch ended the Nikkei has capitulated - it was 13.6 per cent down for the day at 8,308 by 3:03pm, and falling further by the minute.
Hong Kong's Hang Seng was 4.1 per cent lower at 22,399.
|
