JEDDAH/NEW YORK/TOKYO: Shares on major stocks exchanges around the world dropped after a massive earthquake hit Japan, including the capital Tokyo, darkening an already bleak mood caused by weak economic data and unrest in the Middle East and North Africa. The quake struck just before the close of Tokyo stock trading. Japan's Nikkei average closed at an intraday and five-week low, down 1.7 percent on the day. The benchmark Nikkei 225 index closed down 1.7 percent at 10,254.43. South Korea's Kospi fell 1.3 percent to 1,955.54 and Australia's S and P/ASX 200 was down 1.2 percent at 4,644.80. Hong Kong's Hang Seng index shed 1.6 percent to 23,249.78. Mainland Chinese shares fell too. The Shanghai Composite Index lost 0.8 percent to 2,933.80, while the Shenzhen Composite Index of China's smaller, second exchange lost 0.2 percent to 1,299.69. Europe's main stock markets slid at the start of trading Friday, as investors reacted to an earthquake in major economic power Japan. Europe's main stock markets closed down Friday, with London's FTSE 100 index of leading shares shedding 0.29 percent to 5,828.67 points. In Paris, the CAC 40 dropped 0.89 percent to 3,928.68 points while in Frankfurt the DAX fell 1.16 percent to 6,981.49 points. However, US stocks rose Friday as oil refiners' stocks climbed after the earthquake disrupted Japan's refining capacity, and analysts said rebuilding efforts could lift shares of equipment makers. The Dow Jones industrial average rose 74.66 points, or 0.62 percent, at 12,059.27. The Standard & Poor's 500 Index added 10.81 points, or 0.83 percent, at 1,305.92. The Nasdaq Composite Index climbed 17.73 points, or 0.66 percent, at 2,718.75. Oil prices dipped below $100 for the first time this month. The quake is likely to cut short-term demand for crude from Japan, which is the world's third biggest oil consumer, triggering knee-jerk sell-offs across financial markets. Fires triggered by the quake were burning out of control up and down Japan's coast, including one at an oil refinery. Brent crude futures for April delivery fell $1.91 to $113.52 a barrel, having fallen as low as $112.25. US crude futures for April delivery fell $1.54 to settle at $101.16 a barrel, after earlier falling to $99.01.US crude posted a 3.12 percent loss for the week, its first weekly loss in four. Meanwhile, four nuclear power plants closest to a massive 8.9 magnitude earthquake in Japan have been safely shut down, the UN atomic watchdog International Atomic Energy Agency's Incident and Emergency Center said in Vienna Friday. "The four Japanese nuclear power plants closest to the quake have been safely shut down," it said. The yen extended losses against the dollar after the quake, falling to 83.29 yen to the dollar compared with 82.80 before it struck. Key stock indexes in Australia and South Korea closed down more than 1 percent each. The broader Asian market outside Japan was down 1.4 percent, extending its drop by more than 3 percent for the week as fresh outbreaks of violence in the Middle East kept markets on edge. Weak US economic data spurred some profit taking in shares in developed markets which have enjoyed a handsome run this year, though some bargain buying checked losses. "It is another day of reducing risk across the portfolio. We have had it one way for too long and with big issues hitting, everyone is running to the exit at the same time," Chris Weston, an institutional dealer at IG Markets said. In credit markets, sovereign credit default swap spreads pushed wider, reflecting the general risk aversion sentiment. Shanghai copper rebounded but was on track to post its biggest weekly loss since May 2010.
