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Disaster roils Japanese shares, threatens economy

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Disaster roils Japanese shares, threatens economy
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Uncertainty over the economic hit from the Japanese earthquake, tsunami and nuclear crisis means the countries financial markets remain turbulent.

After the initial sell off, Wednesday saw a rebound but investors remain skittish.

The benchmark Nikkei index of Japanese shares fell 6.2 percent on Monday, 10.5 percent on Tuesday, but rose 5.7 percent on Wednesday.

The disaster is already disrupting the global manufacturing chain, hitting technology companies particularly hard.

Japan accounted for 14 percent of the global production of computers, consumer electronics and communications gear last year as well as one-fifth of the world’s microchips.

Manufacturers are warning production could be hit by further supply and distribution problems from power blackouts.

The prospect of extended supply disruption has already pushed prices for key technology parts higher. If the supply chain is broken for even a few weeks, the impact could be felt in higher prices or shortages of gadgets such as tablets and other computers as well as for months to come.