Earthquake 'aftershocks' shake Japan's economy

(Baonghean.vn) - On April 19, stocks traded on the Tokyo Stock Exchange increased again with the Nikkei index recording an increase of more than 500 points after a series of days of decline due to the impact of two earthquakes that occurred on April 14 and 18.

The recent earthquake in Japan forced many famous manufacturers to temporarily close. Photo: Koreantimes.

According to sources in the Japanese financial market, investors' risk aversion has eased. However, the economy of the land of the rising sun will still be negatively affected because many manufacturing companies in Kumamoto 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 23 due to a lack of raw materials for production.

The world's largest automaker said Aisin Seiki, a major parts supplier to Toyota with a branch in Kumamoto, was forced to halt production of doors, engines and other parts due to continued aftershocks. Aisin Seiki is now planning to redirect production to other facilities at home and abroad.

Toyota's production suspension is expected to result in a drop in its 2016 sales and production of about 50,000 vehicles, Japan's Nikkei business magazine said.

Honda Motor Co. said it will suspend production at its plant in Kumamoto Prefecture until Friday, April 22.

Mitsubishi Motors officials announced that they will suspend light vehicle production in Okayama Prefecture through Wednesday, April 20.

Electronics giant Sony also had to close its image sensor factory, which supplies its smartphones, in Kumamoto province after the earthquake on April 14.

In the same situation as Sony in Kumamoto province, Mitsubishi Electric was forced to stop production lines for semiconductors for cars and liquid crystal displays.

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

Thanh Hien

(According to NHK, BBC)