Asia shares mixed, Japan hit by contamination fear

Wednesday, 6 April 2011 00:00 - - {{hitsCtrl.values.hits}}

Asian shares were mixed in quiet trade on Tuesday as Tokyo was hurt by renewed fears over the crisis at the stricken Fukushima Daiichi atomic plant.

With few catalysts to spur buying, dealers returned their attention to Japan where crews at Fukushima have begun dumping radioactive water into the Pacific Ocean to prevent even more dangerous material from being released.

Tokyo’s Nikkei slipped 1.06 percent, or 103.34 points, to end at 9,615.55, while Sydney gained 0.27 percent, or 13.3 points, to 4,900.1.

Seoul gained 0.69 percent, or 14.56 points, to 2,130.43.

Markets in China, Hong Kong and Taiwan were closed for public holidays.

The losses follow a strong performance on Monday, when investors were buoyed by strong jobs figures out of the United States that suggested recovery in the world’s biggest economy was gaining traction.

But despite recent gains since the March 11 quake and tsunami in Japan, concerns linger over the crisis at Fukushima, which has seen radiation emitted into the air, contaminating farm produce and drinking water.

Tokyo Electric Power (TEPCO), which operates the plant, insisted the release of the water -- the equivalent of more than four Olympic-sized swimming pools -- would not harm marine life or seafood safety.

However, the firm’s stock price was sent tumbling again, shedding more than 18 percent amid fears over possible huge compensation claims against it.

The firm has lost more than 80 percent of its value before the earthquake.

“A couple of weeks ago, the company said all they have to do is to cool the reactors, but the situation doesn’t seem to be improving,” a trader at a Japanese brokerage told Dow Jones Newswires.

“Compensation to be paid will likely balloon with this contaminated water release.”

On currency markets the dollar rose after US Federal Reserve chief Ben Bernanke said a recent rise in inflation would not continue, while the euro sank after Moody’s cut its debt rating on Portugal, raising fresh concerns over the eurozone.

The euro bought $1.4181 in European morning trade, down from $1.4220 in New York late Monday. The single European currency had hit a five-month high of $1.4268 in intraday trade Monday.

The greenback also gained to 84.22 yen from 84.03 yen.

The euro changed hands at 119.44 yen from 119.67.