14 March 2011 10:32 [Source: ICIS news]
(updates, adds details throughout)
Explosions occurred at the Fukushima Daiichi nuclear complex as cooling systems failed after the 9.0-magnitude quake and resulting tsunami. Meanwhile, strong aftershocks continued to rock
The country’s central bank had to pour in yen (Y) 7,000bn in liquidity to calm the market in early session. The Bank of Japan said the amount was the largest-ever same-day funds-supplying operation it had conducted.
“The bank will do its utmost to continue ensuring stability in the financial markets and securing smooth settlement of funds, including providing liquidity,” it said.
“The damage of the earthquake has been geographically widespread, and thus, for the time being, production is likely to decline and there is also concern that the sentiment of firms and households might deteriorate,” the bank said in a separate statement explaining its decision to further ease its monetary policy on Monday.
The bank said it had increased the cap of its asset purchase programme by Y5,000bn ($61.2bn) to Y40,000bn.
Shares in Japanese petrochemical producers were severely battered on Monday, as their operations were disrupted by the natural disasters.
Among them JX Holdings, the parent of JX Nippon Oil, shed 14.94%, Mitsubishi Chemical fell 10.37% and Mitsui Chemicals tumbled 11.15% at the close of trading.
JX Nippon Oil, Mitsui Chemicals and Mitsubishi Chemical halted operations at selected plants in
“The earthquake in
Cosmo Oil’s 220,000 bbl/day refinery in Chiba was on fire after the earthquake. Shares of Cosmo Oil plummeted 21.63% on Monday.
Crackers near the quake’s epicentre, such as Maruzen Petrochemical’s 520,000 tonne/year unit in
Most other crackers at various locations in
Operating petrochemical plants were expected to run at reduced rates due to a power crunch in
Meanwhile, concerns that
But the dampening effect on fuel prices may be very temporary as
With additional reporting by Peh Soo Hwee, Felicia Loo, Nurluqman Suratman, James Dennis, Heng Hui, Chow Bee Lin and Junie Lin
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