BANGKOK (AP) - The Tokyo stock market plunged Monday, its first business day after an earthquake and tsunami of epic proportions laid waste to cities along Japan's northeast coast, killing thousands and causing tens of billions of dollars in damage. Shares elsewhere in Asia were mixed, while Europe mostly fell.
Oil prices dropped below $99 a barrel, with the disaster threatening to send Japan, the world's third-largest economy, into a recession that could crimp demand for crude. In currencies, the dollar was down against the yen and the euro.
In early European trading, Britain's FTSE 100 was down 0.4 percent at 5,806.75 while Germany's DAX slid 1.8 percent to 6,858.84. France's CAC-40 was 0.6 percent lower at 3,905.42. Wall Street looked set to head south, with Dow Jones industrial futures down 0.7 percent to 11,923 and S&P 500 futures 0.8 percent lower to 1,291.
In one of the most dizzying days for Japan's stock market since the 2008 financial crisis, the benchmark Nikkei 225 dived 633.94 points, or 6.2 percent, to close at 9,620.49—wiping out this year's gains and hitting its lowest level in four months.
Worries about the economic impact of Friday's disaster, including massive power shortages that could disrupt factories, triggered a broad sell-off that hit all sectors. The broader Topix index was down 7.5 percent.
The sell-off came even as the Bank of Japan injected a record 15 trillion yen ($183.8 billion) into money markets to try to defend the already fragile economy. By flooding the banking system with cash, the central bank hopes banks will continue lending money and meet the likely surge in demand for post-earthquake funds.
Shares of Tokyo Electric Power Co. nose-dived more than 23 percent as it struggled with malfunctioning nuclear reactors and a power shortage that led the company to warn it may need to ration electricity.
Companies with nuclear power-related businesses registered staggering losses, including Hitachi Ltd., down 16.2 percent, and Toshiba Corp., down 16.3 percent. Mitsubishi Heavy Industries slumped 10 percent and Kobe Steel Ltd. skidded 6.4 percent.
Car makers declined partly because quake-stricken northeastern Japan is a major center for auto production, complete with a myriad of parts suppliers and a network of roads and ports for efficient distribution. Major vehicle manufactures have halted production around the country.
Toyota Motor Corp., the world's largest automaker, fell 7.9 percent, Honda lost 6.5 percent, and Nissan dropped 9.5 percent. Mitsubishi Motors Corp. lost 11.8 percent and Isuzu Motors Ltd. plummeted 9.2 percent.
Insurance companies—many of which will likely face heavy claims for lost property and infrastructure—also suffered sharp drops, including Tokio Marine Holdings Inc., down 12.4 percent. Cosmo Oil, whose refinery has been on fire since the 8.9-magnitude quake, slid by a withering 21.6 percent.
Analysts said the prognosis for Japan's economy in the near term depended heavily on whether it could stave off reactor meltdowns at the stricken Fukushima Dai-ichi nuclear plant. Four nuclear plants in northeastern Japanhave reported damage, but the danger was greatest at the Dai-ichi plant.
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