Japanese financial markets have been savaged in the wake of nuclear reactor explosions and fires - wiping more than $US620 billion ($NZ847 billion) off the value of companies on the Nikkei index alone.
However, the intense pressure in global markets appeared to be easing yesterday, reflected in the ravaged Nikkei clawing back 4.37% of value by its half-day trading period.
The futures markets at the New York stock exchange at 5pm yesterday were showing only a slight downturn, with the Dow Jones, Standards & Poor's 500 and Nasdaq futures trading down in a range between 0.02%-0.03%, about two hours after opening.
Craigs Investment Partners broker Peter McIntyre said after two days of furious selling, investors had "taken a breather" and reassessed that the market had been oversold during the previous 48-hours.
"Markets are built on fear and greed; fear has been predominant during the past two days," Mr McIntyre said of the massive company-value losses estimated globally at more than $US1 trillion.
The Nikkei yesterday began to stage a recovery, gaining the 4.37% by about 5pm New Zealand time, having on Monday slumped to close at 6.2% then plummeted a further 10.06% by Tuesday's closing.
During the past three days, the Japanese Government has pumped a total $NZ420 billion into its ailing financial market - in three tranches of $NZ247 billion, $NZ113 billion and a further $NZ60 billion yesterday.
In the United States, the major indexes all closed down after Tuesday's trading, with the Standard & Poor's 500 down 1.6%, the Dow Jones down 1.6% and Nasdaq down 1.7%.
Yesterday, the Asian bourses, which had all been down on Tuesday responded with market gains, with the exception of Hong Kong's Hang Seng.
Forsyth Barr broker Peter Young said the Nikkei opened strongly, up more than 6% in the early stages and New Zealand and Australian exchanges maintained gains; albeit no more than 0.5%.
Unlike the more than two-year global financial crisis, Japan's widespread problems are being seen as a specific event in which the market had oversold equities, which had now created buying opportunities.
Mr Young said Japan's Nikkei 225 stock average plunge of 11% was its third worst daily decline in history, on record trading volume, as investor concern mounted over the safety of the damaged nuclear plants.
He said the stocks of Tokyo Electric Power plummeted by the daily limit with a 25% fall after the company confirmed an explosion at the third nuclear reactor, and also a fire at a fourth reactor.
Shares in Hitachi, which provides nuclear power generation systems, fell 13%, while Mitsubishi Financial Group at one stage reached its lowest point since listing.
The Topix Index declined 9.5% to its lowest close since March 2009.
The New Zealand dollar gained slightly on the yen, at 59.06, but was down slightly against the greenback, at US73.16c.
