14 Mar 2011

Cash injection fails to halt falls in Japanese shares

9:25 pm on 14 March 2011

Japanese shares have slumped, with nuclear stocks virtually unsaleable, despite a record 15 trillion yen cash injection from the Bank of Japan.

The Japanese central bank announced a 7 trillion yen cash injection on Monday morning to stabilise markets after the devastating quake and tsunami, and problems with nuclear power stations.

It later released another 3 trillion yen, then another 5 trillion yen.

Bank governor Masaaki Shirakawa says the central bank will do what is necessary to keep markets stable in the wake of the disaster.

The earthquake also had a devastating impact on the share prices of many companies on the Tokyo Stock Exchange, particularly in the nuclear power sector.

Japan's benchmark Nikkei share index fell by more than 6% in the day's trading.

It slumped more than 5% in the first 20 minutes.