Japan Releases Post-Quake Business Status Report : Investment: The list is intended to prevent speculative stock moves by worried traders. - Los Angeles Times
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Japan Releases Post-Quake Business Status Report : Investment: The list is intended to prevent speculative stock moves by worried traders.

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From Associated Press

Seeking to soothe investor jitters about last week’s devastating quake in western Japan, the government released a report detailing companies that have returned to normal and those that suffered damage.

Ryutaro Hashimoto, head of the Ministry of International Trade and Industry, said the report distributed Tuesday is intended to prevent speculative moves in the stock market prompted by concerns about the quake’s negative impact on the economy.

The report came a day after the benchmark Nikkei stock index plummeted 1,054.73 points, or 5.6%--its biggest fall in more than four years--on increasing fears about the economic effects of the quake last Tuesday, which was centered around the port city of Kobe.

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Tokyo stocks posted their first rebound in eight sessions Tuesday, but investors remain worried about fallout from the quake, which left more than 5,000 people dead. Damage estimates range from $30 billion to more than $100 billion.

The trade ministry report said several major companies in the region have already resumed normal production, following some temporary stoppages after the quake.

Toyota Motor Corp., which had halted production for a day and a half because the quake had disrupted its supplies of crucial parts, restarted regular operations Monday.

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Other companies that were up and running included Matsushita Electric Industrial Co., Kawasaki Heavy Industries Ltd., Mitsubishi Heavy Industries Ltd., Asahi Glass Co. and New Oji Paper Co.

However, the trade ministry also noted that some companies, such as Mazda Motor Corp. and Mitsubishi Motors Corp., have incurred indirect damage because of disruption to regional highways and distribution facilities such as Kobe port.

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Companies that suffered substantial damage include Procter & Gamble Co., which said it hopes to restore full operations at its Hyogo prefecture plant in February, and Mitsubishi Electric Corp., which suffered production disruptions due to damaged equipment and lack of utilities such as gas and water.

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However, at least three companies have no clear schedule for resuming full operations:

* Kobe Steel Corp., where surveyors were still assessing damage at its headquarters and steel plants in Kobe and Kakogawa.

* Kawasaki Steel Corp., where surveyors were assessing damage to headquarters and plants in Kobe and Nishinomiya.

* Sumitomo Rubber Industries Ltd., where half of a Kobe factory was destroyed. The company hopes to transfer production to Nagoya and other locations.

Despite the gloomy predictions of the immediate effects of the quake, many economists are predicting that the long-term effects will be positive, as was the case with the Northridge earthquake last year, because the government will pour billions of dollars into reconstruction efforts, stimulating production and employment.

On Tuesday, Cosmo Research Institute Inc. predicted that such spending will provide a 0.6% boost to Japan’s gross domestic product for the coming fiscal year beginning in April.

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