The Japanese share market plunged more than three per cent on Monday after a series of earthquakes measuring up to 7.3 magnitude struck a southern manufacturing hub, killing at least 42 people and forcing major companies to close factories.
About 30,000 rescue workers were scouring the rubble for survivors and handing out food to those unable to return to their homes, after the quakes struck Kyushu island from Thursday. The biggest hit near Kumamoto city early Saturday.
The Nikkei stock index fell 3.4% as investors weighed the impact of the earthquakes on manufacturers' supply chains and insurers. Factories for major manufacturers including Toyota, Sony and Honda were closed, causing supply chain disruptions around the country.
Japan's atomic regulator declared three nuclear plants in the region safe, giving a degree of comfort to a country deeply scarred by the Fukushima nuclear disaster of 2011 that was sparked by an earthquake and tsunami.
On the stock market, Sony and Toyota led the sharp falls among manufacturers, Sony dropping 6.8% and Toyota falling 4.8%. Nissan Motor and Honda Motor both lost about 3%. Insurers and utilities were also sold, with nuclear plant operator Kyushu Electric Power slumping nearly 8% Toyota said it would suspend production at plants across Japan after the quakes disrupted its supply chain.
Electronics giant Sony said its Kumamoto image sensors plant would remain suspended. One of the company's major customers for the sensors is Apple. Honda said production at its motorcycle plant in southern Japan would remain suspended through Friday.
The epicentre of Saturday's quake was near the city of Kumamoto and measured at a shallow depth of 10 kilometres, the United States Geological Survey (USGS) said. The shallower a quake, the more likely it is to cause damage. The USGS estimated there was a 72% likelihood of economic damage exceeding $10 billion U.S. Major insurers are yet to release estimates.
Related Stories
