Radiations Fear Nosedives Nikkei Drastically
Almost 15 percent fall in Japan’s stock market has been a result of three blasts in a row in their three nuclear plants. These blasts resulted after a deadly 8.9 scale earthquake that generated Tsunami killing thousands of people there. The biggest and highly influential stock market in Asia Pacific region; Nikkei 225 index; has fallen in between the fears of serious outcomes of nuclear radiations resulting from nuclear power plant blasts. Nikkei 225 index comprises of top 225 stocks of Japan.
This has not only created panic within Japan but across the globe markets have been influenced badly especially those in the Asian region. As soon as there was a news about detection of radiations in air samples taken from Tokyo, Japan; there was clearly visible panic among investors in Japan.
Already under the clouds of uncertainty, Japanese investors were seeking clarity from Government regarding extent of damage and its recovery plan; the news about radiations has exasperated their confidence level further resulting into continuous fall in the stock market.
Japan as a nation has a great history of facing such disasters and recovering fast from them. In my opinion the negative trend of stock market in Japan would not last long. Markets would certainly start recovering in next few days as soon as Government declare and execute their disaster recovery plan related to radiations, bringing back of life to normalcy, opening of shut manufacturing units etc. With this recovery, not only Nikkei, but other stock markets around the globe – viz South Korea’s Kospi, Taiwan’s Taiex, Hong Kong’s Hang Seng, Shanghai composite index, India’s Nifty and Sensex etc. will soon see an upward trend.