Nikkei tumbles as earthquake, strong yen reduce risk appetite
By Joshua Hunt
TOKYO, April 18 (Reuters) - Japanese stocks tumbled on Monday after a stronger yen hurt the outlook for corporate profits, while risk appetite was hurt by the earthquakes on the southern island of Kyushu.
The Nikkei share average slid 3.4 percent to 16,275.95 for its largest single-day decline since April 1.
The safe-haven yen soared after global oil producers failed to agree on an output freeze, sending oil prices into a fresh tailspin. The yen neared an 18-month high against the U.S. dollar, trimming the profit outlook for exporters and a broad swath of other Japanese shares.
Some major exporters suffered especially steep declines due to supply-chain disruptions and uncertainty stemming from the Kyushu earthquakes, which caused 42 confirmed deaths and displaced about 110,000 people.
Shares of Sony Corp closed 6.8 percent lower after the electronics giant said its image sensors plant in Kumamoto, hit by the quake, would remain suspended.
Toyota Motor Corp tumbled 4.8 percent after announcing it would suspend production at plants across Japan after the quakes disrupted its supply chain.
"Many are waiting for the dust to settle as it is not yet possible to quantify the damage in its entirety," said Martin King, co-managing director at Tyton Capital Advisors.
Fukuoka Financial Group Inc fell 6 percent and market players said Kyushu's regional banks may require policy relief to cope with fresh difficulties so soon after the Bank of Japan's surprise adoption of negative interest rates. Continuación...