Japan Nikkei shares fall 7.5 percent

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Japan Nikkei shares fall 7.5 percent

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Japanese stocks fell 7.5 percent as investors expected the earthquake to take an economic toll.

14 March,2011 12:47 pm

The drop, on record-high trading volume among the Tokyo Stock Exchanges biggest companies, was compounded by fears about the long-term impact on power supplies after the earthquake damaged a nuclear generator. Auto and electronics makers were among the worst hit. Toyota Motor Co, which said it would suspend production at all its car plants until at least March 16, reducing output by at least 40,000 vehicles, dropped 8 percent. Shares in Toshiba Corp and Hitachi both sank around 16 percent.Japanese ports handling as much as 7 percent of the countrys industrial output sustained major damage, disrupting global supply chains and causing billions of dollars in losses. Japans central bank doubled its asset buying scheme to 10 trillion yen and supplied record funds to banks on Monday to shore up confidence in the economy hit by a triple blow of a massive quake, a tsunami and a nuclear emergency.The Bank of Japan said its action was a pre-emptive step after markets swooned at the shock of Fridays 8.9 magnitude earthquake and a tsunami that may have killed more than 10,000 and has left millions without power, water or homes.