Factories and refineries shut amid devastation

CAR plants, electronics factories and refineries shut across large parts of Japan as the earthquake rocked the country, buckling roads and knocking out power to millions of homes and businesses.

Leaders of the ruling and opposition parties pushed for an emergency budget to help fund relief efforts after Prime Minister Naoto Kan asked them to “save the country,” Kyodo news agency.

The Bank of Japan, which has been struggling to boost the anaemic economy, said it would do its utmost to ensure financial market stability as air force jets roared toward the north-east coast to assess the damage from the biggest quake to hit the country in 140 years. The 8.9 magnitude quake sent shares skidding in Japan and elsewhere, adding to a slide in global stocks to their lowest level in nearly six weeks.

Several airports, including Tokyo’s Narita, were closed and rail services halted. All ports were closed. Electronics giant Sony, one of the country’s biggest exporters, shut six factories, Kyodo news agency reported.

“There are car and semiconductor factories in northern Japan, so there will be some economic impact due to damage to factories,” said Yasuo Yamamoto, senior economist at Mizuho Research Institute in Tokyo.

The worst-hit area, Miyagi and its surrounding areas, include major manufacturing and industrial zones, with many chemical and electronics plants.

Toyota said it had halted production at a parts factory and two assembly plants in the area, while Nissan, the country’s second-largest carmaker, stopped operations at four factories, media reported. The quake occurred as the world’s third-largest economy was showing signs of reviving after shrinking in the final quarter of last year.

The disaster raised the prospect of major disruptions for many key businesses. The yen fell as much as 0.3% against the dollar before recovering, while Nikkei stock futures fell nearly 5% at one point.