Japan's Nikkei average closed down 1.7 percent, hitting a 5-week low after a massive earthquake hit the north-east coast of Japan on Friday. The quake, with a preliminary magnitude of 8.9, according to the US Geological Survey, shook buildings in Tokyo causing "many injuries", NHK television and witnesses reported. The Nikkei benchmark had been lower throughout the day on worries over the Middle East.
Nikkei Singapore futures fell below 10,000 after the quake but later recovered to 10,075 yen. Osaka futures ended the day at 10,170. The Nikkei closed at a 5-week low falling 1.7 percent to 10,254.43. "It is still too early to assess the damage as we are still seeing aftershocks. We see a sharp correction in the yen and the BOJ might maintain its dovish policy stance at a meeting next week," Vincent Tsui, an economist at Standard Chartered Bank in Hong Kong.
"At a time when the global oil price surge has hit the global economic recovery outlook on which Japan is heavily dependent, this development will influence them to maintain a dovish stance on policy," he said. The Nikkei was down for most of the day on concerns about the global economy and unrest in Saudi Arabia, but advances in individual shares helped trim losses, showing bulls were still ready to buy on dips.
Adding to ongoing worries about unrest in Libya, reports of police firing on protesters in Saudi Arabia revived fears of further unrest in the world's top oil exporter, while the euro fell after a downgrade of Spain's credit rating by Moody's, souring sentiment in equity markets.
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