Japanese automakers, electronics firms and oil refiners shut key factories after a massive earthquake and tsunami struck the northeast coast, underscoring the challenge facing the government as it rushes to limit the economic blow.
Electronics giant Sony Corp has suspended operations at eight factories including one making optical film that was flooded by the tsunami triggered by Friday's 8.9-magnitude quake. Nissan Motor halted output at all four of its domestic assembly factories and said restarting them could Motor halted output at all four of its domestic assembly factories and said restarting them could depend on whether it can get parts. These are just two in a long list of companies unsure of how quickly they can get their plants back up and running.
The widespread damage to infrastructure as well as power rationing after an accident at a nuclear plant could also hamper efforts to resume shipments, even if factory equipment is intact. Experts say Japan's economy will suffer only a temporary setback from the quake and could bounce back in a matter of months once spending on the rebuilding efforts starts to kick in But major technology and auto exporters are expected to be among the hardest hit shares when financial markets open on Monday, reflecting worries over the potential disruption to output and pressure on profits over the short-term. Construction firms, which will benefit from the rebuilding pressure on profits over the short-term. Construction firms, which will benefit from the rebuilding are set to gain.
Shared by Dolphin Browser HD