Aftershocks from the earthquake are wreaking havoc on the Japanese economy.

April 19, 2016 19:04

(Baonghean.vn) - On April 19, stocks traded on the Tokyo Stock Exchange rebounded, with the Nikkei index recording a gain of over 500 points after a series of declines due to the impact of the two earthquakes that occurred on April 14 and 18.

Trận động đất diễn ra tại Nhật Bản vừa qua khiến nhiều hãng sản xuất nổi tiếng phải tạm thời đóng cửa. Ảnh: Koreantimes.
The recent earthquake in Japan has forced many well-known manufacturers to temporarily close down. Photo: Koreantimes.

According to sources in the Japanese financial market, investor risk aversion has eased. However, the Japanese economy will still be negatively impacted to some extent, as many manufacturing companies in Kumamoto Prefecture and other areas have been forced to temporarily suspend operations, especially automobile manufacturers.

Toyota announced that the double earthquake disaster has forced the company to suspend operations at most of its assembly plants nationwide until April 23rd due to insufficient production materials.

The world's largest automaker said that Aisin Seiki, a major parts supplier for Toyota with a branch in Kumamoto, has been forced to halt production of doors, engines, and other components due to continuing aftershocks. Aisin Seiki is now planning to shift production to other facilities both domestically and internationally.

Toyota's suspension of production is expected to lead to a drop in the company's 2016 sales and production of approximately 50,000 vehicles, according to Japan's Nikkei business magazine.

Honda Motor Company announced that it will halt production at its plant in Kumamoto Prefecture until Friday, April 22nd.

Officials from Mitsubishi Motors announced they will suspend production of light vehicles in Okayama Prefecture until Wednesday, April 20th.

The electronics giant Sony also had to close its image sensor component manufacturing plant, which supplies components for the company's smartphones, in Kumamoto Prefecture after the earthquake on April 14th.

Similar to Sony in Kumamoto Prefecture, Mitsubishi Electric has been forced to halt its production lines for semiconductors used in automobiles and liquid crystal displays.

The earthquake in Kumamoto also affected restaurants and retail businesses in the area. Japan's popular supermarket chain Aeon closed all 27 of its stores in the earthquake-affected region on April 17th.

Thanh Hien

(According to NHK and BBC)

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