Tuesday Morning Recap: Japan-Driven Sell Off Overdone Or Just The Beginning?

HedgeFundLIVE.com – Morning Notes

– >14% sell off in Nikkei upon Tokyo Energy’s confirmation that there was a third explosion at a new reactor in Fukushima + fire at another reactor
– Japanese PM Naoto Kan in talking about radiation levels addressed nation to stay indoors
– Needless to say, everything in the red
– People in Japan are hoarding supplies and trying to leave Tokyo as fear of radiation spreads (weather forecasts suggest wind will probably blow radiation toward Tokyo)
– Nikkei finished down 10.6%
– Note today’s move in the Nikkei was the steepest drop since 1987
– Meanwhile Shanghai closed down 1.4%, Hang Seng closed down 2.9%
– Yen is actually up (may be due to unwind in carry trade)
– Nat gas up => increase in demand from Japan to make up for electricity shortage]

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