Nuclear crisis in Japan contaminates stock markets across the world

Shares across the world fell, the Tokyo Stock Exchange lost 10.6%. The Bank of Japan injected 245 billion dollars into the economy. A new major earthquake hit. Germany closed down 7 reactors. Romania's nuclear strategy is not affected.

The situation in Japan remains critical after a third blast at the Fukushima nuclear power plant and a rise in the level of radiation in Tokyo led to an investor exodus, with the Japanese stock exchange falling 10.6%, which generated a chain reaction across the entire world. In two days of trading, Japanese companies lost around 626 billion dollars of their value.

In Europe, the most affected was the German stock exchange, with the DAX index down by around 3.5%, followed by the French one, down more than 2.1% and the British stock exchange, which fell 1.5%. The Bank of Japan flooded the market with 245 billion dollars in cash to make sure there was enough money on the market in case massive amounts left the market.

In Tokyo panic struck when rumours appeared that the level of radiation had risen to 23 times the normal value. The situation stabilised subsequently. However, the level of radiation is still a big concern for the authorities, with Japanese Minister of Foreign Affairs Takeaki Matsumoto saying its level after the fire at reactor 4 of the Fukushima nuclear plant "could have negative effects on the health" of the population. "At reactor no. 4 there was a fire, there is radiation that could have negative effects on people's health," Matsumoto said.

In addition, a strong, magnitude six earthquake struck on Tuesday evening around 120 kilometres South-West of Tokyo.

The crisis facing Japan has generated major disputes across the world regarding the nuclear energy sector, with Germany suspending activity for three months at seven reactors in use since before 1980. This is the most drastic measure taken worldwide, but several countries have announced they are revising their security norms at existing power plants.

As for Romania, plans to build Reactors 3 and 4 at Cernavodă are not jeopardised.

"Personally, I don't think (events in Japan will affect the construction of the new plant in Romania i.e.), but they may have an impact in terms of boosting the level of resistance to extreme events," says Teodor Chirica, member of the European Atomic Forum and former general manager at Nuclearelectrica, the company that manages the two nuclear reactors in Cernavodă.