The benchmark stock index of Japan, The Topix experienced a decline for the 2nd consecutive day mainly because of the drop in the utilities industry. Regulators stated that an active earthquake fault is probably running under a nuclear reactor named Tsuruga No. 2 reactor. This is operated by the Japan Atomic Power Co. The regulators also stated that the investigation team is still not sure whether the reactor is safe or not in its current condition.
The Topix plummeted by 0.3% and is at 786.07 at the time of closing. Incidentally, on 7th December, the index reached the highest level within last 7 months, mainly because of the speculations that the opposition party will come into power after the upcoming elections and the new Japanese Government may call for numerous economic stimulus measurements. The Nikkei 225 Stock Average also experienced a fall of 0.1% today and is at 9525.32 currently.
The biggest decline among the electricity producers was experienced by Kansai Electric Power Co., as it dropped by 4.4%. This marks the biggest drop in the Nikkei 225 Index. Kansai shares are currently priced at 742 Yen per share. Chubu Electric Power Co., on the other hand, saw a decline of 4.1% in its share prices. Tokyo Electric Power Co. shares also plummeted by 1.4% and is currently priced at 138 Yen per share.
According to the Daiwa Securities Co.’s Deputy Head of Research, Takuya Takahashi, there is not much news in the market and hence the utility industry report was able to have an adverse impact on the overall Japanese stocks. Ayako Sera, who works as the market strategist for Sumitomo Mitsui Trust Bank Ltd. stated that the chances of restarting nuclear reactors are lean now and hence, the electricity prices are bound to jump higher. Ayako added that as a result, the raw material companies will be hit hard.
The 2nd biggest decline in the stocks was experienced by Nintendo, as its shares plummeted by 4.8%. On 8th December, its latest home video game console Wii U was released, however analysts predict that the same can face stiff competition from not only the smartphones or tablet computers, but Nintendo’s own handheld gaming devices as well.
The biggest gain was achieved by Sharp (6.9%). Sumco Corp, also advanced by 5.4%, thereby extending the 17% gain that it experienced yesterday.