Tokyo stocks slip as quake-hit Japan struggles to recover

Tokyo stocks slip as quake-hit Japan struggles to recover

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Asia Bizz: Thursday was a bad day for Tokyo stocks as it dipped considerably on account of the ongoing radiation leaks, power shortages and its impact on production in Japan.

The Nikkei Stock Average was 14.46 points down from Wednesday to 9,435.01. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 7.15 points to 853.95.

The stocks started on a high, backed by the gains on Wall Street, but later slipped low after constant worries about the nuclear crisis at the quake hit the Fukushima Daiichi plant. Japan still coming to terms with the earthquake and tsunami, witnessed a new crisis with high levels of radioactive substances in tap water supplies in Chiba and Saitama Prefectures. This is affecting everyday lives. The blackouts amid power shortages added to the market woes. Many companies fear a major fall in their earnings as power shortages would only bring down production. Buying shares at this point was almost impossible.

Market players were trying to find out how much production would be curbed due to the limited power supply. Needless to say the pressure on Japanese economy is immense.

The Japanese nuclear crisis has affected not only the stock market but also businesses related to Japan. Several airlines have reported losses on their flights to Japan. Automotive manufacturers have also been forced to suspend production at several plants in Japan.