The Nikkei stock average fell 6.2 and the Topix fell 7.5% because the exporters are having to shut down factories because of rolling power blackouts and aftershocks. Sony has had to shut down 8 plants and Nissan shut down all of its plants, both stocks were down over nine percent overnight. On the other hand the home builders and builder or construction related sectors rose.
TEPCO the electric company that produces power through the Fukushima nuclear plant shares were halted as sell orders out numbered bids 200 to 1.Fukushima was rocked by a first explosion on Saturday, which blew the roof off a reactor building. The government had said further blasts would not necessarily damage the reactor vessels.
As I mentioned yesterday, after the initial turmoil, this crisis will be a huge buying opportunity. Its now estimated that this disaster will cost their economy 171 billion dollars. But if anyone can come out of a disaster its the Japanese, they have done it before. They are already pumping money into the system 11 trillion yen was reported yesterday. So I will keep a close watch on EWJ after the initial plunge lets see it make a base before putting new money in.
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