Japanese sharemarket falls further; anxiety prevails over Asian markets
City Index March 15, 2011 4:13 PM
<p>The Japanese sharemarket continued to plummet today, dropping 14 per cent at one point as investors sold off their positions in markets across Asia. The […]</p>
The Japanese sharemarket continued to plummet today, dropping 14 per cent at one point as investors sold off their positions in markets across Asia.
The sell-off, which dominated the trading day in most Asian markets, was triggered by an announcement from the Japanese Prime Minister Naoto Kan regarding the status of the nuclear plants affected by the earthquake and tsunami that hit Japan last Friday.
There’s definitely a lot of anxiety and uncertainty in the market. Investors are concerned on the potential impact of the Japanese disaster. While it is too early to determine the extent (of the earthquake and tsunami), the immediate concern is for the safety of the people living near the power plants.
I believe the Japanese government is doing everything to contain the damage and impact of these disasters. They face a huge task and it would take a lot of effort not only from the Japanese government, but also from the international community to recover from this catastrophe.
The sell-off was across the board. I think investors are just willing to stay with cash at the moment. It may take another couple of days for certainty to get back into the market again.