ASX hit by Japan fears

File photo / NZ Herald

Australian shares closed at a 14-week low as fears of a nuclear catastrophe in Japan battered investor confidence.

The benchmark S&P/ASX200 index was down 18.4 points, or 0.4 per cent, at 4626.4 points while the broader All Ordinaries index retreated 24.7 points, or 0.52 per cent, to 4710.1 points - its lowest finish since December 6 in 2010.

On the ASX 24 , the March share price index futures contract was 17 points lower at 4614 points, with 110,428 contracts traded.

Potter said traders had been solely focused on news out of Japan: "Stocks quickly fell away, accelerating as the Japanese market opened mid-morning; however, news that the BoJ [Bank of Japan] had pumped in a record amount of liquidity saw markets recover significantly."

Potter said the weight of uncertainty on investor confidence and sentiment meant it would be extremely difficult for the local market to recover some of the recently lost ground.

The domestic bourse has been down five out of the past six sessions.

Potter said the bulk of the sectors were firmly in the red, with the energy, material and financial sectors doing the most damage.

The uranium sector was down after another explosion at a nuclear power plant in Japan, fuelling meltdown fears.

Rio Tinto-managed Energy Resources of Australia, the world's fourth largest uranium miner, was down A$1.15, or 12.23 per cent, at A$8.25.

Toro Energy plunged 3c, or 23.08 per cent, to 10c, fellow uranium explorer Extract Resources dropped 82c, or 7.71 per cent, to A$9.81, and uranium miner Paladin Energy was down 78c, or 16.49 per cent, at A$3.95.

Liquefied natural gas (LNG) giant Woodside was up 40c at A$42.20 after ratings agency Fitch said renewed safety concerns surrounding nuclear power generation could benefit the development of new LNG projects in Australia.

Among other oil and gas producers, Santos dropped 2c to A$14.16 and Oil Search was steady at A$6.62.

The major miners were mixed, with BHP Billiton down 10c at A$44.09 while Rio Tinto put on 35c to A$79.15.

The major banks closed weaker. Westpac was three cents lower at A$22.87, Commonwealth was down 28c at A$50.58, ANZ gave up 21c to A$22.96 and NAB eased 6c at A$24.68.

- AAP