However, a comparison with the effects of the major earthquake that struck Kobe, Japan on January 17, , may provide some useful reference points.

The magnitude scale used by the US Geological Service is not linear. Unlike the Kobe quake, the Tohoku quake was centered offshore, generating the tsunami. The affected regions accounted for The five prefectures most affected by the Tohoku quake are not as industrialized as the Kobe quake region. They account for about 7. Following the Kobe quake, industrial production dropped in the month of January but then advanced by 2.

In , the Japanese economy had considerable spare capacity that could be used to offset the reduced production from the area affected by the quake.

That situation is also present today in Japan. While the Japanese economy expanded at a 3. Also, Prime Minister Kan has indicated the government is preparing a major fiscal package.

We hope this will prove to be the case, but based on the limited information we have to date, we think there is a certain risk the Japanese economy will be hit harder and take longer to adjust than was the case in The market continued to trend downward through June, with the decline reaching Of course, other factors were at play, including heightened US-Japan trade tensions, but it is interesting to note that the apparent effect on equity investor attitudes was considerably more adverse than the macroeconomic developments would imply.

The Nikkei regained its pre-quake level by mid-December The Tohoku quake, tsunami, and still unfolding nuclear crisis are clearly having a traumatic effect on Japan, the worst crisis Japan has suffered since World War II.

Japan earthquake: market reaction - Telegraph

We do not expect investor and consumer confidence to recover rapidly. The Nikkei dropped 1.

Eventually this market will likely offer a buying opportunity, but it is far too soon to judge when that will be the case. Read the original article on Cumberland Advisors. Tech market is nowhere near the dotcom days. How augmented reality is changing the way we work.

The Real Economic Impact Of Japan’s Earthquake - Business Insider

You are using an outdated version of Internet Explorer. For security reasons you should upgrade your browser. Please go to Windows Updates and install the latest version. Trending Tech Insider Finance Politics Strategy Life Sports Video All. You have successfully emailed the post. Recent Posts Things are looking up for Japan Greece is on the brink of an 'accident' Here comes China's yuan.

Japan Earthquake Kobe, Japan Tohoku.

Recommended For You Powered by Sailthru. Thanks to our partners. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. Disclaimer Commerce Policy Made in NYC. Stock quotes by finanzen.