Tokyo: Japan will suffer severe economic costs from last Friday’s devastating earthquake and tsunami but major ratings agencies Moody’s and Standard and Poor’s said on Monday they did not anticipate any effect on its sovereign ratings. One initial estimate has put the economic cost at 15 trillion yen ($183 billion).
Meanwhile, Bank of Japan unveiled plans to pump in 15 trillion yen into the economy. Analysts said the economy could even tip back into recession.
Global stocks hit 6-week low, Nikkei plunges
Tokyo: The Nikkei average tumbled 7.5%, its biggest decline in a single day since October 2008, and more than 4.9 billion shares changed hands on the exchange’s first section, the highest number since World War 2. World stocks also hit a six-week low driven by a slide in Tokyo shares.
Oil below $99 as disaster stuns world economy
Singapore: Oil prices dropped below $99 a barrel on Monday in Asia after the tsunami, denting demand for crude from the world’s third-largest economy.
Honda, Toyota, Nissan suspend production
Tokyo: Honda Motor Co said it will suspend all production in Japan at least until March 20. Toyota Motor also said it would suspend production at all its domestic car plants until at least March 16.
Nissan Motor also shut down all four of its auto assembly plants in Japan.
Japan quake tests supply chain from chips to ships
Seoul/Taipei: Global companies from semiconductor makers to shipbuilders moved to minimise major supply disruption. The killer quake and ensuing tsunami destroyed infrastructure and knocked out factories supplying everything from high-tech components to steel, forcing firms such as Sony Corp to suspend production.
Plant closures and production outages among Japan’s high-tech companies were among the biggest threats to the global supply chain as an estimated fifth of all global technology products are made in Japan.
Big quake cost estimate weighs on insurers
London: Shares in European insurers fell steeply on Monday after analysts estimated over the weekend that the earthquake could cost the industry $35 billion, making it one of the most expensive disasters ever.
Employees safe, monitoring situation: IT majors
New Delhi: Indian IT giants TCS, Infosys and Wipro on Monday said their employees in tsunami-hit Japan are safe and are constantly monitoring the situation there.
TCS has over 200 people in Japan, while its peers Infosys and Wipro have over 250 people and 400 employees, respectively.