March 16th, 2011
07:51 AM GMT
(CNN) – The Tokyo Stock Exchange closed higher Wednesday after the government interjected more than $43.2 billion into the Japanese economy – raising the total of emergency cash pumped directly into the economy to a record $325 billion in the past three days.
As troubling as falling investor confidence is the rising value of the yen, which hurts the profits of export driven companies like automotive maker Toyota and electronics manufacturer Sony. On Wednesday afternoon the yen was trading in Tokyo at 80.92 yen to the dollar – just a little over one yen higher than the currency’s historic high of 79.75 yen in 1995.
The Nikkei 225 finished trading 5.68% higher than Tuesday’s close, following two days of frenzied selling.
On Tuesday, the Nikkei fell 10.6% - it’s greatest one-day drop in more than 23 years as the country struggles with the earthquake and tsunami damage, as well as the escalating drama surrounding several nuclear power plants damaged by Friday’s temblor. The drop was the third worst one-day drop in the Nikkei’s history.
The losses over two days totaled more than 16%. Tuesday’s sell off – lead by foreign investors dumping Japanese equities, market watchers say – was described as a panic reaction to the escalating crisis in Japan and the fear problems at the nuclear power plants could impact human health and extend evacuation orders.
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