The Site > Old Forums > It Is The Economy, Stupid > Massive Japan earthquake/tsunami hitting world stock markets

Stock markets in Europe and Asia fell sharply on Friday after a powerful 8.9 magnitude earthquake struck off the northeastern coast of Japan, triggering a tsunami that geologists warned would likely hit other parts of the world sometime during the day.

Tokyo Stock Exchange, triggering a last-minute selling panic that left the Nikkei down 1.7 percent to 10,254-its lowest level since January.

Dow futures were down 68 points. European markets sank to a three-month low. Hong Kong's Hang Seng index closed down 1.6 percent, South Korea's Kospi lost 1.3 percent and Taiwan's Taiex slipped 0.9 percent. In Europe, battered insurance stocks pushed markets down as well.

Oil also plummeted. April Nymex crude oil futures were off 90 cents, selling at $101.80 a barrel.

And Japan futures are down over 3% after their stock market closed.

In an unprecedented move for tech-savvy Japan in recent decades, Tokyo Electric Power Co. rolled out blackouts of three hours per day to parts of suburban Tokyo and other cities, starting Monday.

"It looks like we are going to be running on reduced electricity for a long time. That is a definite risk to industrial production," said Carl Weinberg, chief economist at New York-based researcher High Frequency Economics.

The nation's big-three automakers, meanwhile, said they would halt all production in Japan due to widespread damage to both suppliers and transport networks in the region.

"The impact on Japan's economy will be devastating," said Sheila Smith, senior fellow for Japan Studies at the Council on Foreign Relations, a New York-based think tank. "The long-term economic blow to a country already struggling to lower its budget deficit ... will be significant."

Japan market right now is down like crazy amount see the graph. Does japan not have auto market shutdown once it gets past some crazy amount?

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Japanese stocks suffered their biggest one-day fall Tuesday since 2008, with the main index sliding 11% as panic selling set in over a broadening nuclear crisis.

The selling was spread among local and foreign investors alike, and was especially heavy in the futures market. While bargain-buying late in the session helped the Nikkei 225 Average off its lows, and key support at 8000 held, analysts said the mood remains wary.

"It's panic selling. It's not only foreign investors—everybody just wants to dump shares," said Retela Crea Securities general manager Yosuke Shimizu.

The Nikkei closed 1,015.34 points lower at 8605.15, having ...