Nikkei average falls

The Nikkei share average fell slightly on Tuesday, bouncing from steep early losses as investors bought futures in the afternoon when other Asian bourses rose, offsetting the impact of mounting worries about Japan's crippled nuclear plant and the damage to corporate earnings from this month's earthquake.
The benchmark had ended the morning session down 1.5 percent before paring gains later in the day, but analysts said the futures buying may not be strong enough to bolster the market in the longer term. "Futures buying can be a short-term catalyst to help the market," said Hiroichi Nishi, general manager at Nikko Cordial Securities.
"But this is not going to turn around the mood in the market and it doesn't mean that buyers will return to the market."
Shares of Tokyo Electric Power tumbled 19 percent to 566 yen after going untraded in a glut of sell orders after the Yomiuri newspaper said the government would temporarily nationalise it and help pay compensation for damage caused by its crippled Fukushima nuclear plant. National Strategy Minister Koichiro Gemba said later that a discussion about bailing out Tokyo Electric was possible.
"The situation in Fukushima has a big, underlying impact on the market, with worries over the plant likely impacting Wall Street yesterday," said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets. The discovery of plutonium in soil at the Fukushima complex heightened alarm on Tuesday over Japan's protracted battle to contain the world's worst nuclear crisis in 25 years. The benchmark Nikkei fell 0.2 percent, or 19.45 points, to 9,459.08 after hitting an intraday low of 9,317.38 in morning trade.
Market players estimated that 83 points of the Nikkei's early fall was due to selling pressure from the passage of the date for investors to receive dividends for the current business year ending on March 31.
The broader Topix fell 0.9 percent to 850.21. Analysts pegged an immediate support level for the Nikkei around 9,300. Japanese shares have lost about 7.8 percent since the March 11 earthquake and tsunami, and a subsequent nuclear safety crisis, triggered the biggest two-day rout in the market since 1987. In contrast, the MSCI index of Asian shares outside Japan has gained 3.2 percent.
The head of the Tokyo Stock Exchange said on Monday that some Japanese companies, mainly manufacturers, would likely be late in announcing full-year earnings for this business year because of the disaster, which in turn would delay the payment of dividends. Mizuho Financial Group plunged 6.0 percent to 140 yen in heavy trade after the Financial Services Agency said on Monday it would inspect Mizuho Bank over its recent computer system troubles.
Mizuho was the fourth most actively traded share on the Tokyo exchange's first section by turnover. Nippon Chemi-Con Corp soared 13 percent to 391 yen after Macquarie Securities raised its rating in the stock to "outperform" from "neutral". The brokerage said that, although the company's earnings may be hit by production delays due to the earthquake, they may improve from the July-September quarter as the positive outlook for the aluminium capacitor industry remains intact.