Meltdown alert at Japan reactor

 

		Nikkei 225 Index

Early share trading was complicated because many sellers of shares struggled to find buyers.

As a result, a number of stocks remained untraded after the markets had opened. By the end 4.88bn shares had changed hands.
Immediately after the quake, the central bank pledged to "do its utmost" to limit its impact, including providing liquidity to money and banking markets. Details of the pledge, a 15 trillion yen cash injection, was released over the weekend.
The deadly quake and subsequent tsunami hit Japan just before the markets closed on Friday.
"The recent major earthquake is bound to exert downward pressure on Japanese equities as a whole over the near term," Nomura said in a note to investors.

Strong yen

Japanese Economics Minister Kaoru Yosano was quoted by the Jiji news agency saying that he was keeping a close eye on the movement of Japan's currency, the yen, which has strengthened.

Economists said that a stronger yen may make it harder for companies to sell their goods abroad, further hurting their earnings.
Analysts said that there were concerns about the speed with which Japan's economy could rebound from the problems.
Last month Japan was overtaken by China as the world's second-largest economy.
"In the short term, the market will almost surely suffer and stocks will plunge," said Koetsu Aizawa, economics professor at Saitama University.
"People might see an already weakened Japan, overshadowed by a growing China, getting dealt the finishing blow from this quake."
Some analysts have forecast that Japan's economy may lose as much as a percentage point in growth this year because of the quake.
Japan's economy contracted by a more-than-expected 1.3% in the final three months of 2010.
Rebuilding effort

Production and trade will fall in the short term, analysts say, but could 'surge back'

However, while there are concerns about the short-term impact on the economy, there are industries where investors are looking to increase their holdings.
Shares in Japanese construction firms have surged in value on Monday as they are expected to play a central role in rebuilding the country in coming months.
Foreign firms have also been in focus, notably technology producers and carmakers, where shares have been gaining.
Investors, for example, are expecting an increase in orders for Korean goods because production has been suspended in many of Japan's factories.
South Korea's Kospi index was up by 0.5%, although elsewhere in the region major markets were lower. Hong Kong's Hang Seng index as down by 0.4%.