Stocks in Japanese brewers tumble amid fears of nuclear catastrophe

Fears of a nuclear catastrophe in Japan after last week’s earthquake and tsunami prompted a near 11 percent slide in the country’s main stock market on Tuesday 15 March 2011. Keeping your eyes glued on the performance of the Japanese stock market is almost obscene, given that an estimated 10,000 people lost their lives and millions of Japanese have more pressing worries these days.

Nevertheless, investors in the stock markets took fright on the news that a radiation leak was detected at the Fukushima power plant and residents were warned to stay indoors. The benchmark Nikkei 225 stock average sank a staggering 10.6 percent – more than 1,000 points – to close at 8,605.15 after sliding as much as 14 percent. The two-day fall alone has wiped some USD 644 billion off the market, it was reported.

Japan’s brewers also saw their stock going down. Asahi Breweries’ share price dropped to YEN 1300 on 15 March 2011 from YEN 1550 on 11 March 2011.

Takaharu Tsuzuki, who represents Asahi Breweries in Europe, told BRAUWELT International on 16 March 2011 that Asahi has had to close two breweries in Fukushima and Ibaraki temporally because of small damages and a lack of infrastructure such as electricity and gas supply.

“People are not panic-buying beer but water and food in the area because of the shortages”, he said.

He added: “I believe the Japanese people have plenty of grit and will overcome the challenges.”