Nikkei tumbles as earthquake, strong yen reduce risk appetite

  • Reuters
  • Stock Market News
Nikkei tumbles as earthquake, strong yen reduce risk appetite
Credit: © Reuters.

By Joshua Hunt

TOKYO, April 18 (Reuters) - Japanese stocks tumbled on Monday after a stronger yen hurt the outlook for corporate profits, while risk appetite was hurt by the earthquakes on the southern island of Kyushu.

The Nikkei share average .N225 slid 3.4 percent to 16,275.95 for its largest single-day decline since April 1.

The safe-haven yen soared after global oil producers failed to agree on an output freeze, sending oil prices into a fresh tailspin. The yen neared an 18-month high against the U.S. dollar, trimming the profit outlook for exporters and a broad swath of other Japanese shares.

Some major exporters suffered especially steep declines due to supply-chain disruptions and uncertainty stemming from the Kyushu earthquakes, which caused 42 confirmed deaths and displaced about 110,000 people.

Shares of Sony Corp 6758.T closed 6.8 percent lower after the electronics giant said its image sensors plant in Kumamoto, hit by the quake, would remain suspended.

Toyota Motor Corp 7203.T tumbled 4.8 percent after announcing it would suspend production at plants across Japan after the quakes disrupted its supply chain. are waiting for the dust to settle as it is not yet possible to quantify the damage in its entirety," said Martin King, co-managing director at Tyton Capital Advisors.

Fukuoka Financial Group Inc 8354.T fell 6 percent and market players said Kyushu's regional banks may require policy relief to cope with fresh difficulties so soon after the Bank of Japan's surprise adoption of negative interest rates.

Kyushu Electric Power Co 9508.T ended the day 8 percent lower as about 38,000 households remained without electricity. Shares of Sabu Gas Co Ltd 9536.T slid 3.9 percent after it suspended supply to about 105,000 households around Kumamoto.

The Topic subindex for insurance shares .IINSU.T was 5.8 percent lower, weighed down by property and casualty insurers.

The broader Topic .TOP shed 3 percent to end the day at 1,320.15 with all but one of its 33 subindex down. The construction sector .ICNST.T edged up 0.1 percent in anticipation of reconstruction projects.

The JPX-Nikkei Index 400 .JPXNK400 fell 3.1 percent to 11,934.49.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles