Japan’s economy has suffered a series of aftershocks since the massive earthquake and tsunami struck the country.
The Nikkei, however, clawed back some recent losses on Tuesday buoyed by signs that the nuclear crisis at Fukishima was easing.
Much uncertainty remains, but some believe the disaster could make Japan more productive in the long-term while also having a positive effect in the wider Asia region.
Senior economist at JP Morgan Securities Japan, Masamichi Adachi said: “In the short term, probably some negative impact could be inevitable, but in the medium to longer term as you mentioned some companies probably feel it is better to locate their factories outside of Japan, so that’s probably positive for the emerging Asian countries.”
He went on to say, “I think and I hope Japanese companies will strengthen their productivity and that will probably boost the economic expansion here.’‘
165 billion euros is one figure being touted for the cost of reconstruction. Such a massive rebuild is also likely to spur growth.
In the short term, however, radiation concerns from the Fukishima power plant remain the major worry. No more so than for Tokyo’s vegetable wholesalers who returned to work on Tuesday after a long weekend. They are facing supply halts to spinach and other green leaf vegetables from four prefectures in and around the Fukishima complex after the government ordered a ban on shipments.