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Category: Money

Japanese Economy Plunges After the Earthquake

Written on March 14, 2011 by Japhet Writ

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After an earthquake and tsunami hit Japan last Friday, the country's economy is now on a fragile state.

The Japanese went to a drop last Monday, after an 8.8 magnitude and Tsunami hit the country on Friday. Due to economic impact of last week’s disaster, benchmark 225 stock average fell to 9,666.64 points.

Tokyo Electric Power Co. is expected to drop double digits with its malfunctioning nuclear reactors and power shortage. Investors also dumped shares over concerns about economic production and consumption, making export stocks register a staggering loss. In addition to this, automobile manufacturers like Toyota Motor Corp., Nissan Motor Co., and Honda Motor Co. suspended production at all auto plants in . Insurance companies, including Tokio Marine Holdings Inc., also acquired sharp drops by 16 percent. ’s biggest clothing store, Fast Retailing Co., lost 4.7 percent, while Cosmo Oil plummeted to 25.6 percent.

On a positive note, industrial and material companies like Kojima Corp. rose on expectations to benefit from the country’s rebuilding efforts. The Bank of Japan put in seven billion yen into money markets, defending the already frail . That way, the central bank hopes that other financial institutions will continue lending money to meet the anticipated demands for post-earthquake funds.

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