Nuclear firm Chubu shares plummet

9 May 2011 Last updated at 00:15 ET  Scientists said the chances of a powerful quake striking the Hamaoka region was high Shares in Japan's Chubu Electric, a power supplier, fell heavily on Monday, after calls for the closure of a key nuclear facility.

On Friday, Prime Minister Naoto Kan asked Chubu to halt operations at its plant in Hamaoka, central Japan.

Mr Kan said three reactors in Hamaoka should be suspended until new safety measures were put in place.

A shutdown may result in power disruptions to Toyota Motor and many other major manufacturers.

"This news is triggering uncertainty not just about Chubu Electric, but the whole utility sector," said Yoshinori Nagano, a senior strategist at Daiwa Asset Management.

"Investors are concerned that on the back of this news, other reactors currently under inspection may not resume operations soon."

Chubu stock fell as much as 14% at one point on Monday, pulling down other electricity and gas shares.

Board meeting

The Hamaoka plant, which lies 200km (120 miles) south of Tokyo, is in Shizuoka prefecture - an area which seismologists say is overdue for an earthquake.

Chubu Electric has told BBC News it plans to hold an extraordinary board meeting later on Monday to decide whether to comply with the government's request.

The board met on Saturday to discusss the potential closure without reaching a decision.

Mr Kan's government is under intense pressure to review its energy policy after Japan suffered a devastating earthquake and tsunami in March.

Engineers are still struggling to contain the damage at the Fukushima Daiichi plant in northeastern Japan.