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Analysts expect economic impact from Japan quake

 

An 8.9-magnitude earthquake has hit north-east Japan, sending tsunami waves deep inland and causing major damage to buildings and infrastructure.

Angus Campbell, head of sales at London capital group says the quake is likely to deal a severe economic blow, while Timothy Condon, chief economist at ING Financial Markets says it could bring a rally for construction companies.

Angus Campbell said the tsunami is likely to leave lasting damage.

"The problem with this earthquake is because it wasn’t land based, it was just offshore, the effects are expected to be much more detrimental and wide ranging… it’s going to hamper growth for Japan, it’s going to take a long time for Japan to recover from this and rebuild."

However, Timothy Condon says the economic damage could prove less severe than the negative market reaction suggests.

"We’ll have a long weekend to assess the damage and see whether or not the huge falls we’ve seen immediately following the news of the earthquake are justified. I imagine that will be a good reaction to the extent of the damage. I suppose we’ll see construction companies actually rallying on Monday."

Location

London
United Kingdom
51° 30' 0.5472" N, 0° 7' 34.4496" W

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