Massive Selling in Japan Spreads to Global Markets

By DAVID JOLLY and MATTHEW SALTMARSH
NYT

TOKYO — The prospect of a nuclear catastrophe in Japan led to massive selling Tuesday on global markets, driving the benchmark index in Tokyo down more than 10 percent, while Frankfurt tumbled 5 percent in early European trading.

Unnerved by the earthquake and tsunami that struck Friday, investors in Japan had already sent the Nikkei 225 index down more than 6 percent on Monday. They stepped up their selling Tuesday after another explosion occurred at the Fukushima Daiichi Nuclear Power Station and a fire released radioactive material into the air.

After falling more than 14 percent at one point, the Nikkei closed down 10.6 percent at 8,605.15 points, the lowest in nearly two years. The broader Topix, or Tokyo Stock Price Index, ended 9.5 percent lower.

Unlike on Monday, when stock market losses were largely confined to Japan, the nervousness spread Tuesday across the Asia-Pacific region and to Europe, amid fears about the impact on the broader economy and corporate activity.

(More here.)