Tokyo stock market plunges after recession threatens Japanese economy

Tokyo's stock market plunged 633.94 points on 14th, falling as much as 6.18%, with the Nikkei 225 stock Average price index breakdown at 9620.49 points.　　Major stock markets in the Asia-Pacific region also fell 14th. Market panic, the Nikkei stock index plunged 14th was the first full trading day of the Tokyo stock market after the great earthquake.　　The major earthquake disaster and the loss of the industry will lead to a widespread pessimism about the economic outlook, the Nikkei stock index after the opening of a sharp drop of nearly 4%, within a few minutes below the million mark, the plate fell about 600 points to 9,600 points, the last November since the lowest value in the disk. The tumbled Nikkei stock index plunged 633.94 points to 9620.49 points, or 6.18%.　　It was the first time in nearly 3.5 months since December 1 last year to lose the million-point mark, the biggest drop since the financial crisis hit October 16, 2008 (down 1089.02 points). The East Card Index (TOPIX) fell 68.55 points to 846.96, or 7.49%.　　Volume of about 4.883 billion shares a day, a record high. On the same day, the Tokyo Stock Exchange for the stock index futures trading between the gap is too large and tentative transaction.　　The total market value of the East Card main board evaporated about 23 trillion yen in the same day to about 289 trillion yen. Affected by the earthquake, Japanese manufacturers such as Toyota have halted production, and the imposition of electricity rationing in the eastern part of the country could lead to severe restrictions on sectors such as the capital circle, so export sectors such as automobiles and motors, as well as domestic demand sectors such as retailing and food, fell almost across the board from early trading.　　The rise of the day is limited to a few stocks such as construction enterprises. The yen rose to 81:1 levels against the dollar on that day.　　The appreciation of the yen will affect the performance of Japanese exporters, thus further pressure on the market in Tokyo. The BOJ 14th decided to inject emergency capital into short-term money markets such as banks with 18 trillion trillion yen, of which 15 trillion yen was injected today.　　In the foreign exchange market, the yen fell back, making some stocks oversold rebound, but the afternoon index continued to shock lower. Saving！　　Business production ban overtime by the earthquake and rotating power outages and other factors, Japan's large enterprises to stop manufacturing time to extend, including Toyota's big Dafa and Japanese companies decided to cut production to 16th. Nissan, Mazda, Suzuki and other companies to stop production to 16th, including Nissan in the stable Wood County, two factories decided to suspend production to 18th.　　Fuji heavy industry companies to make cars from the production plant to 16th, Mitsubishi Motor Company discontinued to 15th, Isuzu discontinued to 18th. Affected by the earthquake, Renesas is located in Qingsen and Cicheng County 7 factories in the production of the shutdown to 15th, due to the impact of the rotating power outage, another 3 production base closed.　　Japan Electric Company is located in Shanxing County Yonezawa City's computer factory began production 14th, but the Northeast 3 factories continue to shut down. As a result of the earthquake caused the power supply tight, Japanese companies and commercial shops 14th in the demand for stableAt the same time, began to economize electricity. Sony 14th notify all employees to leave 5 o'clock in the afternoon on time, prohibit any overtime. Sony's headquarters building in Tokyo is off-limits to elevators, and lighting and air-conditioning are limited. According to Tokyo Electric Power Company's request, the Tokyo Iron and Steel company in the stable Wood County Yudugong factory began to stop production, will continue until 18th.　　During this period, the main task of the plant is to detect the damage of plant equipment.　　Retail giant Aeon Company announced that its 3,500 stores stop advertising lighting, outdoor advertising night ban on lights.　　"Uncertainty about the economic outlook increases," Shirakawa, president of Japan's central bank, said 14th that uncertainty about Japan's economic outlook has increased as a major earthquake hit. Shirakawa said that the earthquake affected a wide geographical range, foreseeable short-term enterprise production activities will be reduced, which will have a negative impact on business and household consumption.　　In addition, TEPCO's power rationing plan will have a big impact on the real economy, but will not affect the Japanese capital and securities clearing system.　　Shirakawa said there was a big increase in the demand for financial institutions ' reserve funds in the short-term financial markets, and the central bank implemented the largest open market operation on capital supply to ensure market stability.　　Japan's central bank announced the same day that the bank's unsecured overnight lending rate, the benchmark interest rate, remained at zero levels.　　At the same time, the Bank of Japan announced it would inject 18 trillion yen (1 U.S. dollars and 81.9 yen) into the financial markets and decided to expand its asset purchase plan to 5 trillion yen to 40 trillion yen. "The impact on Japan's economy may be greater than the Hanshin earthquake," said Carl Wimberg, chief economist of the High-frequency Economic Information Society of the United States, 13th, the big earthquake to the Japanese economy caused great losses.　　Given Japan's lack of domestic resources and limited monetary and fiscal policy space, the impact of the earthquake on Japan's economy may be greater than that of the Hanshin earthquake.　　He said Japan needs a lot of money for post-disaster reconstruction, but the government debt is now twice times the size of the economy, the largest in all developed countries, and Japan's fiscal deficit is almost 10% of GDP, the government itself has not too much resources to use, the reconstruction of funds face a huge problem. After the great earthquake in Japan, some economists believe that the short-term damage caused by the earthquake can be overcome, in the long run, the reconstruction process can create jobs, so conducive to Japan's economic development. In this respect, Weinberg held a different attitude.　　He said that both in New York after the "terrorist attacks" and New Orleans by Hurricane Katrina, the economy shrank after a catastrophe and even invaded the country.　　According to the latest figures from Merrill Lynch, the 1995 Kobe earthquake weighed on Japan's economic growth of 0.4%-0.5%.　　Weinberg said the quake damaged Japan's vast infrastructure, including power grids, roads and ports, which would affect almost every Japanese company. He pointed out that 30% of Japan's electricity comes from nuclear power, according toHigh-frequency Economic information agency estimates that more than half of Japan's nuclear power supply has been interrupted, the lack of electricity will directly affect the economic production capacity.　　The destruction of the port has been a serious blow to Japan's highly dependent export economy. The earthquake effect will be transmitted to the world economy when it comes to the impact of Japan's great earthquake on the economies of the world, Weinberg said the impact of Japan's great earthquake was transmitted to the world economy mainly through two channels: first, Japan is the third largest exporter, many countries in the world rely on Japan to provide products, supply chain disruption will cause their production disruption.　　Second, Japan is a major importer of all kinds of goods, and the change of demand will cause turbulence in international market price.　　On the performance of the financial markets this week, Weinberg predicted that the stock market would fall as investors fell in anticipation of the economic outlook, that the yen would strengthen as capital flowed back to domestic demand, and that the yield on Japanese bonds would rise as markets questioned the financing capacity of Japan's post-disaster reconstruction.　　"The stock index will not fall below 9,500 points," said Tian Gang, an analyst at Sun Hing Securities Company 14th, people do not know the extent of the damage caused by earthquakes, the economic recovery momentum and the impact of the stock market is immeasurable, the Japanese economy will have a long-term negative impact. The main reason for the sharp decline in share prices is the fact that people are selling Japanese stocks to reduce risky assets, Tian Gang.　　It is difficult for investors to actively invest in the stock of Japanese listed companies until they are aware of the overall situation. Most of Japan's major enterprises in the affected areas with factories, damage caused by earthquakes will inevitably affect the business performance.　　The yen continued to rise after the quake struck in the foreign exchange market, a double whammy for exporters.　　Ueno Thai, the Mizuho securities firm, also said that in the quake zone, consumers ' psychology was greatly affected and could hinder economic recovery.　　But some economists are cautiously optimistic, Kang, a Barclays capital trader, predicts that the index will not fall below 9,500, and the Bank of Japan's 14th injection of short-term financial markets has a stabilizing effect on investor psychology. Tokyo, March 14 (Xinhua)