TOKYO – Japanese shares fell again Thursday amid jitters over the nation's nuclear crisis, erasing a portion of the gains from a post-quake rally.
The benchmark Nikkei 225 shed 4.1 percent to 8,721.88 points. That wiped out a portion of gains from Wednesday's rally, which followed a sharp plunge in prices. Japan's devastating earthquake, tsunami and nuclear crisis last week triggered widespread selling, wiping out all of the stock market's gains this year.
In currency markets, the U.S. dollar fell to a record low against Japan's yen as companies sold dollar-denominated assets to raise Japanese currency for earthquake recoverty efforts.
The post-quake plunge prompted extraordinary government efforts to reassure investors and keep markets functioning to support recovery. Japan's central bank has pumped 26.5 trillion yen ($326 billion) into money markets and the Tokyo exchange's president publicly appealed for calm.
"Growing uncertainty over the nuclear plant really spooked investors, promoting them to adjust positions and buy back the yen," said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd.
"Foreign investors continued to dump stocks on growing fears over the nuclear accidents. Also investors are worried that the quake and the nuclear disaster could surely dent economic growth."
The index had shed more than 1,600 points, or 16 percent, Monday and Tuesday as worries over the nuclear crisis triggered widespread selling.
