Shares Japan tumble as fears of the nuclear crisis create panic

The damaged Fukushima Daiichi Central nuclear where several explosions took place. Photo: Getty

The benchmark Nikkei 225 closed 5 FP7, with the broader Topix 6 FP6 increase but London of the main shares index added just points of 0 1pc with 5,700.81 open.

Gains in Europe has been also muted DAX 30 Frankfurt 0 FP7 and Paris's CAC 40 amounting to 0 5pc.

Other Asian markets had followed Japan higher, then even if the number of victims human and economic disasters, including an escalation of the nuclear crisis, remains uncertain.

At a time given the Nikkei climbed more FP6 but fell back after the Japan suspended operations to prevent a nuclear power plant disaster down after a surge of radiation is too dangerous for the workers to remain in the installation.

Most wanted shopkeepers deals after panic selling sent the index sinking 10 FP6 the day before. The Nikkei closed at its lowest level in nearly two years on Tuesday after the fall of more than 1 600 points, or 16pc, during two days - its worst two-day sell-off since 1987.

During this time, the Central Bank has pumped cash markets of money from Tokyo for a third day.

The Bank of the Japan injected 3.5 billion yen (£ 27bn), following injections totalling 23 billion yen ($283 billion) over the last two days. Contributing to banking shares perk up, lifting Mitsubishi UFJ Financial, the largest bank in the country, 2 2pc.

Exporters of power plant of the Japan took their breath after suffering staggering losses. Toyota Motor, constructor of no. 1 in the world, increased 6 4pc, Sony shot up to 7 5pc and truck-maker Isuzu was 7 3pc higher.

Industry heavy share rose the shock of the disaster gave way to thoughts of the reconstruction. Kobe Steel rose 11 3pc and Matsu Construction increased 4 8pc.

However, investors still remain tight on a crisis of change quickly to a central nuclear crippled northeast of the Japan. Authorities were still struggling to control the situation at the plant in Fukushima Dai-ichi after a string of explosions and fires, and a burst of radiation.

"It's very early days for the calculation of any impact on the economy and the stock and bond markets," said Sarah Williams, head of Japanese equities at Threadneedle based in London, which manages approximately $65bn assets.

"Until the safety of these plants is assured, investors remain cautious."

Markets elsewhere in the region of pointe. ABN Korea of added South 1. 8pc 1,957.29 and S & P/ASX 200 the Australia increased by 0. FP7 to 4,558.20. Landmarks in New Zealand, Singapore and Taiwan were also higher.

Shanghai Composite China has 1. 1pc, and actions on the Hang Seng in Hong Kong were flat.

Markets in Indonesia and the Philippines - who rely on the Japan for a relatively large share of their export - were down. Viet Nam and the Malaysia also fell.

The nuclear crisis swept financial markets of the world Tuesday as fears grew that the disaster to the Japan could slow the global economy. The Japan is the third largest global economy, manufacturing goods of automotive computer chips and bought 10pc of U.S. exports.

However, Wall Street counter. Index Dow Jones Industrial closed just 1. 1pc - or 137.74.49 points-11, 855. 42after fall as much as 3pc at a given time. FTSE 100 Xenopus Britain also melts to terminate 1. 38pc to 5,695,28. Earlier, the blue-chips were fallen to a minimum of expense 5622.53 year, wiping about £ 32bn offshore of the value of the index.

Levels of market in London and New York had expected a rebound in Japanese stocks today, claiming that the world liquidation had been exaggerated.

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Short-sale "not a negative thing", says EU markets Chief Steven Maijoor

Politicians in France and Germany have been vocal in their criticism of what many consider malicious speculation Photo: AFP

Speaking publicly for the first time, former senior regulator Dutch Steven Maijoor, who was appointed last month, the President of the European Securities and markets (ESMA), Authority said in short circuit, where a trader borrows a security and then immediately sells, hoping to buy it at a lower price, were "not a negative thing.

"I'm not a banner." This will be an activity that is exceptional. "You want to count on the choice and innovation," said Mr. Maijoor, adding that fact short-circuit markets more liquid.

His comments came at a confirmation hearing in the European Parliament, where he was questioned by MEPs.

Short-selling is proven to be highly controversial in recent years, and the United Kingdom and United States both temporarily banned short selling of shares of the financial sector at the height of the financial crisis in 2008. Germany prohibits so-called "naked" shorting - where a security is not even borrowed before it is sold - eurozone government debt last year that the Greek sovereign debt crisis was blamed partly on short-circuit paper fund shares.

Mr. Maijoor said that it remained open to the possible need to prohibit the sale of short, but think that it was more often beneficial to market.

"The question to what extent there was manipulation, was not a clear answer yet," he said.

Politicians in France and Germany have been vocal in their criticism of what many consider malicious speculation and Tuesday, the EU said that it supported edges on speculative investment in commodities such as grain after recent extreme price movements.

Regulator high Bank of the European Union also made his first public appearance since his appointment conditionally employment. At his own confirmation hearing, Adrea Enria explained to MEPs stress tests planned this year for the largest banks in the region would need to be much more difficult than last to regain credibility with the market.

"We cannot rely solely on the conduct of national authorities stress tests." "We peer review to ensure that the results are robust," said Mr. Enria, in an implicit criticism of tests last year doesn't have to soothe market fears.

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Shareholders feel failures of meeting room where the shoe

Investors certainly cares how the companies they invest in, and a blow to look at the map will tell you why. When there are serious shortcomings in the meeting room, as evidenced this week to undermine Kazakh ENRC, shareholders finally felt where the shoe.

ENRC is inferior to the rest of the UK mining industry by a substantial margin during the past year, despite more than doubled its profits in 2010 on the back of the global boom in commodities. Chart shows why corporate governance cannot be an add - on for one Fund Manager. It is a fundamental element of the process which, in this case, led no surprise to many investors, giving the company a wide berth.

Most of the examples of bad governance are less glaring than the unedifying spectacle of defenestration of Wednesday last two non-executive directors of the ENRC. Sir Richard Sykes and Ken Olisa have shown the door, it would seem that, for having the temerity to do their work - holding managers to account. It was the first time in ten years a Director of a FTSE 100 company was voted off the coast of the Commission at an annual meeting.

At the heart of this debacle is the predominance of a trio of founding shareholders who promised an interventionist approach when the company floated in London in 2007 but have ignored since this promise. With undermine fellow FTSE 100 Kazakhmys and the Kazakh Government, the three have control over the shares of the company, less 20pc that are freely accessible to outside shareholders.

This would normally prevent a float in London, and a special exemption was granted for him to move forward on the ground was big enough for a few shares in the float to represent a liquid market. The events of recent days have questioned the wisdom of this decision.

ENRC as a publicly quoted company life was affected by controversies, including the eviction of its Chief Executive (who remains nevertheless responsible), a dispute mines purchase in the Democratic Republic of the Congo (now subject to a legal battle in the British Virgin Islands) and critical francs from the company by politicians, which one has warned its executives — not only way to be "a patsy for puppet-masters."

One of the great strengths of the London Stock Exchange is its international exposure. The first phase of globalization during the Victorian era, age, when the money raised in London built railways of the world, canals and Telegraph, the city funnelled capital of the world where he can work harder. That it continues to do so, it is a good thing for the prestige and balance of payments of the nation, but also to investors of the country.

Home bias means that people over-invest in their national markets and to the to the United Kingdom about half of all the assets are invested at home, four or five times that suggests the capitalization of the London market. But international companies listed on the UK bias means that it is more logical as it may seem. A London investment is to a large extent an investment in the world economy and especially in the emergence of the developing world.

However, the international character of the London market can remain only a positive if the threshold of quality for companies listing here is set to high and kept it. The stamp attached to a quote from London, with its implicit stamp of approval means that good companies and bad will cry for a list. Similarly, costs banking investment offers when massive foreign companies on the market mean there is a huge temptation does step to examine too closely before riding on the red carpet. It is a dangerous combination of incentives to close our eyes.

Investors are rights pushed more questions companies with no connection to the United Kingdom when they choose to register their shares in London. Not that anyone can claim that they have not received a warning in the case of ENRC. 25 Pages of risk in its prospectus factors were an indication that this was not going to be a smooth ride.

tomrstevenson@fil.com

• Tom Stevenson is a Director of Fidelity International investment. The views expressed are his own

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Slips of Omega after the quake Despite talk of bid Japan

Retirement Omega was replicated on the market of the Lloyd after estimates of claims to a devastating earthquake in the Japan tripled over the weekend. Modeling agency that AIR said that it might generate a loss assured of more than $14 (£ 9 billion) and more than $34 without loss of tsunami taking into account the risks.

The new saw shares fall Catlin 11.1 to 338.7 p, Beazley retired 3½ to 120.3 p and Hiscox slipped 3-369.3 p.

The scale of the devastation caused by the largest earthquake recorded in the Japan become clearer in the coming weeks, even if global reinsurers are likely to absorb most of the losses.

Kevin Ryan, an analyst at Investc Securities, said: "earthquake of last week is likely to be a loss of reinsurance, at trial even if we suspect that its magnitude may help raise insurance rates."

"The earthquake, tsunamis and aftershocks expected this week are likely to generate one of the largest losses of reinsurance seen, we believe." If this occurs, it will affect insurance and reinsurance prices and it may affect equity markets.

The FTSE 100 hardened 53.43 to 5775.24 like the societies of disaster affected the whole of the market. The broader 250 FTSE closed of 59.87 at 11349.66.

Burberry luxury goods retailer was the biggest faller on the index of blue chip, landslide 51 p to £ 11.23 on concerns that the demand for its products would fall in the wake of the disaster.

Moreover, energy and mining Amec fell 37 percent to 11 pm £ 15 after the evolution of securities cut its rating to add to purchase.

"The battles to control nuclear power plants in the Japan... will focus on security issues in the industry and are likely to be a prelude to renewed against 'new nuclear' battles to the United Kingdom,"Evolution says in his note. "

"We would expect the media"normal"nuclear hysteria lead to more delays in the British programme to build 11 new reactors over the next 15 years, which will not be good news for Amec, who sees nuclear as key elements in its strategy of"Power and process"division."

From the Japan, Vodafone dipped 3.9 to 175 percent on reports that Vivendi is not prepared to pay much more for £ 6bn for stake in listed UK SFR, the French mobile operator company.

Analysts said that vodafine had hoped to receive an offer more close to £ 7bn capital, which has been victim of elimination the strategy of the company to sell non-core assets.

Cairn Energy remote from 1.3 to 428.3 Indian p after that regulators confirmed that they were nearing the end of their appreciation of the offer of more than $9 Vedanta Resources for India Cairn.

The Securities and Exchange Board of India yesterday said that he was the "concluding observations" on the market, although he has not given details. Sources in India, said that the decision remained in balance, despite the development.

At the other end of the scale, Aggreko was characterize most important day after confirming he was ready to equip to the Japan with some of its autonomous gas and diesel generators. Shares in the provider of temporary power reached 116 p £ 15.23.

"Aggreko stands ready to help the Japan and its people in any way that it can provide temporary power if asked," a company spokesman said when asked if Aggreko had received no request to provide units to the Japan.

"We have already marked our commitment to the competent authorities and will deploy our equipment as quickly as possible if necessary."

BG Group reached 54 p £ 15.14 on suggestions that it could also help to provide the Japan with liquefied natural gas (LNG). Brendan of Souza, Seymour Pierce analyst, said: "BG has high capacity in LNG." An impact of the tsunami in the Japan seem to be that certain nuclear facilities may not be able to produce electricity.

"That will have to be converted to other sources, such as gas and coal.

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