. | . |
Japan plants shut down after quake, fuels economic fears by Staff Writers Tokyo (AFP) April 15, 2016 Some of Japan's biggest firms including Sony and Toyota shut down operations in southern Japan Friday after the region's deadly earthquake, but analysts said while the economy could be affected the impact would be far less than previous disasters. At least nine people were killed in Thursday night's 6.5-magnitude quake, which also toppled houses and buckled roads on the southwestern island of Kyushu. With widespread damage to infrastructure, several companies -- including in the steel, auto and technology sectors -- said they had temporarily ceased production. Exporter giants Toyota, Honda and Sony were carrying out safety checks to assess possible damage to plants and those of suppliers. Other firms shutting down included Mitsubishi Electric, Renesas and Fujifilm as well as tyre maker Bridgestone and beverage titan Suntory Holdings. Sony shares ended down more than three percent, Toyota lost 1.1 percent and Honda was off one percent while Bridgestone lost 0.5 percent. However, the broader Nikkei stock index ended just 0.4 percent lower, with some of the losses also attributable to profit-taking after a strong rally this week. Minister of Economy, Trade and Industry Motoo Hayashi told reporters that there had not been the devastation that tore into northern Japan after the 2011 quake. "There are some companies that have stopped operations, but so far I've received no reports of huge impact such we had" in the March, 2011 quake, he said, according to Jiji Press That quake unleashed a deadly tsunami that swallowed schools and entire neighbourhoods, killing more than 18,000 people and triggered reactor meltdowns that released radiation in the most dangerous nuclear disaster since Chernobyl in 1986. It also led to the closure for several months of dozens of factories, decimating the country's production capacity and sending shockwaves through the already struggling economy. Shattered supply chains and rolling power shortages forced companies such as Sony and Toyota to temporarily shut plants in the weeks after the disaster and Japan's industrial output tumbled by its largest amount on record in the March. Many component manufacturers were based in the worst-hit regions and the disaster led to a call for firms to spread their operations to avoid a repeat of the widespread shutdown that hammered economic growth. "Overall damages are so far concentrated in Kumamoto," said Harumi Taguchi, economist at IHS Economics in Tokyo. "If (the) supply chain had gotten damaged due to train and road conditions... the influence could spread to neighbouring prefectures and other regions," she said in a message to AFP. She added, however, that compared to the 1996 earthquake in Kobe and the 2011 disaster "damage is probably quite limited". Still, the latest quake comes as the economy struggles to get on track, with the government's much-lauded growth drive stumbling. "Japan's economy has weak growth momentum and remains in a fragile state with the absence of a powerful and sustained engine for growth," Yasunari Ueno, chief market economist at Mizuho Securities in Tokyo, told Bloomberg News. "Any unexpected powerful shock could push the nation into a recessionary phase." kh/kgo/dan
Related Links Bringing Order To A World Of Disasters When the Earth Quakes A world of storm and tempest
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |