Friday, March 18

Japan company not sure if they back

Important factories close TOKYO - Japanese car manufacturer, electronics companies and oil refineries after a massive earthquake and tsunami struck the northeast coast, underlines the challenge for the Government as it rushes to limit the economic blow.

Electronics giant Sony Corp. has operations in eight works, including one optical film that triggered by Friday 8, 9-magnitude quake tsunami flooded was exposed to make. Nissan Motor output on all four of its domestic assembly factories stopped and said restarting it might depend whether it can collect parts.

This are only two in a long list of companies unsure how fast they secure their plants get can and run. The widespread damage to infrastructure and power rationing could after an accident at a nuclear power plant also hamper efforts, broadcasts resume, although works equipment is intact.

Experts say Japan's economy will suffer only a temporary setback from the Quake and could spending on reconstruction efforts in the kick start bounce-back to April.

But important technology and car exporters are expected to be among the hardest hit shares when markets open on Monday, output and pressure on profits reflecting short-term worry about possible interruption. Construction companies, which benefit from the reconstruction, are set to win.

"We are concerned about the infrastructure - streets, trains, buses, trucks." Not only are the things, which in the production delay, want to, but that produces materials that you need to be delayed. It is all a quarter or two, find "Brian Heywood, CEO of Taiyo Pacific partners, the $2 billion invested Japanese stocks." "Everyone will miss their number in the short-term."

Japan's beleaguered government is struggling to respond what has developed into the biggest crisis in the country since World War II. More than 10,000 people were killed, nearly 2 million people are still without makes and another 1.4 million without running water, media said.

Heads of State and Government are pushing for an emergency budget for relief and reconstruction, but the effort probably by huge public debt of the country, about 200 percent of the $5 trillion economy be restricted and grow. Japan spent about 3 trillion yen after the 1995 Kobe earthquake caused about $100 billion in damage.

The Bank of Japan is expected on Monday promise as much money as needed, to prevent that the disaster destabilising markets and its banking system to deliver. Also expected, it will further facilitate their willingness, the already easy monetary policy to signal.

"Some investors could rush to sell Japanese stocks tomorrow, but investors are also closely just how fast and solid Japan to a crisis like this, to respond", said Shinichi Ichikawa, chief market strategist at Credit Suisse Securities.

"For the Japanese Government to show strong leadership is essential, investor confidence in its economy and market again, above all, if the global economy on track for a recovery is led the United States"

Toyota Motor Co., the world's largest automaker, has stopped production at all 12 of its domestic factories in Japan and was unable to check in the affected area.

Panasonic Corp., said further aftershocks were so check by two factories in North Japan, an electronic parts and other digital cameras and audio devices. It said a lack of appropriate power and water supply was a potential bottleneck.

Securing a stable power supply relatively cheap could be a major hurdle for companies prove, said analysts.

Tokyo electric power, which is struggling to avert a meltdown at the Fukushima plant, said that it would restrict supply from at least April, including two large companies.

A fire in the vicinity of a Cosmo oil refinery Sunday not had extinct is another concern.

"I would say is, the greatest risk," said get.

Another risk is the potential strengthening of the yen, a 16-year high against the dollar, the profits of exporters, is already a close of the main pillars of the Japanese economy threatening floats.

The yen rose significantly after the Kobe earthquake as repatriated funds to cope with the disaster.

"The yen a ripple effect could have," said Taiyo Pacific Heywood. "A strengthening could depend Yen premature and unnecessary financial companies pressure that strong overseas sales."

Copyright 2011 Thomson Reuters.

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