TOKYO, March 29 (Reuters) - Japan's Nikkei average fell on Tuesday, hurt by resurfacing worries over the crippled nuclear plant and the impact of the earthquake and tsunami on corporate earnings, with plant operator Tokyo Electric Power untraded on reports of possible nationalisation.
Market players had estimated the Nikkei would come under selling pressure after the date passed for investors to receive dividends for the current business year ending March 31.
Shares of Tokyo Electric were untraded due to a glut of sell orders after a newspaper said a plan to nationalise the operator of the stricken Fukushima nuclear plant has been floated within the Japanese government.
"The situation in Fukushima has a big, underlying impact on the market, with worries over the plant likely impacting Wall Street yesterday," said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets.
Plutonium found in soil at the Fukushima complex heightened alarm on Tuesday over Japan's protracted battle to contain the world's worst nuclear crisis in 25 years. [ID:nL3E7ES2ND]
"TEPCO untraded again is also souring the mood on the Nikkei. If press reports were to be confirmed, looking at similar examples in the past, the value of existing shares is likely to decrease. In an extreme situation, the company may even be delisted," Takahashi said.
By mid-morning the benchmark Nikkei was down 1.5 percent or 145.59 points at 9,328.40. The broader Topix lost 1.9 percent to 841.44.
The head of the Tokyo Stock Exchange said on Monday that some Japanese companies, mainly manufacturers, will likely be late in announcing full-year earnings for this business year because of the earthquake and tsunami, which in turn would delay the payment of dividends. See [ID:nTKZ006904]
Japanese shares have lost nearly 11 percent since the earthquake, tsunami and threat of a nuclear disaster triggered the biggest two-day rout on the market since 1987. In comparison, MSCI's index of Asian shares outside Japan has gained 2.5 percent since the quake.
(Reporting by Antoni Slodkowski; Editing by Michael Watson) Reuters Terminal users can see other related news and rates by double-clicking on: All Nikkei indices <0#.NIKKEI> All shares listed on The benchmark Nikkei ended the day up 1.1 percent or 101.12 points at 9,536.13, Nikkei-225 <0#.N225> N225 index TOPIX index Nikkei Japan 1000 TOPIX sector data Nikkei 300 index TOPIX futures data <0#JTI:> Osaka N225 data <0#JNI:> Chicago N225 data <0#NK:> Top 30 by volume Top 30 by value Total volume Total value 1st section sector RICs All TSE weighted avg Top 30 gainers by pct Top 30 losers by pct Top 30 net gainers Top 30 net losers
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