Japan’s Nuclear Crisis likened to Chernobyl. Asian Markets Fall.

Japan’s Nuclear Crisis likened to Chernobyl. Asian Markets Dip in Response

Japan’s Nuclear Crisis likened to Chernobyl. Asian Markets Dip in Response (image courtesy googlenewslive.com)

Reports poured in about Japan’s nuclear crisis having now got bad enough to be equated with the Chernobyl disaster, causing a significant dip in stock markets across Asia – the Shanghai Index being one of the only ones to be reporting a 0.3% rise.

With Japan having raised its assessment of how severe the Fukushima nuclear crisis is, now ranking the emergency as a level 7 event on the international scale for nuclear disasters, equates the disaster with Chernobyl.

Closing Bell

While Kospi Composite, South Korea’s index and the Hang Seng, Hong Kong’s stock market both fell by 1.4%, Taiwan dipped even more and finished 1.7% lower – dropping as much as Japan’s Nikkei Stock Average. Australia’s ASX also fell significantly by 1.5%.

Of the 33 Topix sub-indexes, all but one ended up lower, with Tepco, owner of the Fukushima Daiichi Plant, falling by 3%.

Some of Japan’s other manufacturing giants showed effects of suffering, with Nikon going down 3.2%, and Sony, falling 2.7%.

The Australian market showed widespread effects of Japan having upped its severity ranking of the Fukushima crisis across sectors, with BHP Billiton falling 1.3%, Fortescue Metals going down 3.4% and Westpac Bank falling 0.7%.

A sell-off frenzy of risk-sensitive currencies such as the euro and the Australian dollar was also seen, while so-called safe-bets, the yen and the Swiss franc, rose.

Korean regional markets also reported significant losses, with manufacturing giants like Samsung, Hyundai and LG Chem falling 1.2%, 2.4% and 2% respectively.

What brought on the change in severity rank?

According to the International Nuclear Event Scale, developed by the International Atomic Energy Agency in collaboration with countries that use nuclear energy, a disaster would be ranked as a Level 7 nuclear accident if it involves “widespread health and environmental effects” and the “external release of a significant fraction of the reactor core inventory.”

The Level 7 rating has previously been applied only to the Chernobyl disaster in the former Soviet Union. The previously assigned Level 5 rating positioned the Fukushima crisis on the same level as the Three Mile Island accident in Pennsylvania in 1979 – the new rating obviously means a significant increase in the estimated effects of Japan’s nuclear crisis.

With Mr. Hidehiko Nishiyama, deputy director general of Japan’s nuclear regulator, the Nuclear and Industrial Safety Agency, having declared that “tens of thousands of terabecquerels” of radiation per hour have been released from the plant, what will this change in severity rank mean in terms of overall repercussions in the use of nuclear energy as an alternative source of energy?

Like Tetsuo Iguchi, from the department of quantum engineering at Nagoya University said in a statement, “The fact that we have now confirmed the world’s second-ever level 7 accident will have huge consequences for the global nuclear industry. It shows that current safety standards are woefully inadequate.”

Avatar
Vrushti Mawani
Vrushti Mawani, News Editor Industry Leaders Magazine (www.industryleadersmagazine.com)

Recent Posts

Store Closures Cost European Retail Giant Primark $1.43 Billion in Sales

Store Closures Cost European Retail Giant Primark $1.43 Billion in Sales

The European retail giant Primark said the COVID-19 had caused a loss of over $1.43 billion (£1.05 billion) in sales from store closures. T...
1 day ago
Goldman Sachs to concentrate on consumer banking arm Marcus for growth

Goldman Sachs to concentrate on consumer banking arm Marcus for growth

Goldman Sachs Group Inc. is firming up plans to bolster its consumer banking arm Marcus through acquisitions and concentrating on digital ba...
1 day ago
General Electric claims Siemens Energy used stolen theft secrets to win contract bids

General Electric claims Siemens Energy used stolen theft secrets to win contract bids

General Electric Co. has accused rival Siemens Energy AG of using stolen trade secrets to rig bids for lucrative contracts supplying gas tur...
2 days ago
U.S. Trade Department Slams Digital Services Tax

U.S. Trade Department Slams Digital Services Tax

The U.S. Trade Representative on Thursday said that the Digital Service Taxes (DSTs) in Spain, Austria and the U.K. is unreasonable and disc...
2 days ago
Bitcoin volatility attracts regulatory attention

Bitcoin volatility attracts regulatory attention

Touted as digital gold, Bitcoins have seen some volatile action in the last few days, with the cryptocurrency hitting nearly $40,000 at one ...
3 days ago
Renault plans to overhaul brand with Renaulution aimed at cutting costs

Renault plans to overhaul brand with Renaulution aimed at cutting costs

Renault has come up with a new plan called Renaulution to turn around the fortunes of the car company by concentrating on value rather than ...
3 days ago