New numbers out, Monday, showed that Japan faces a huge recovery and reconstruction bill after the country was hit by a massive earthquake and a tsunami.
Analysts say the cost of reconstruction would be at least (US)$180-billion, or 3 per cent of its economic output.
The Tokyo stock market plunged more than 6 per cent with investors selling everything from the car makers to the chip makers to the power producers.
Some of the hardest hit stocks were the uranium producers, as some began to question the safety of nuclear power.
Cameco, the world’s largest publicly traded uranium company, had its worst one day performance in almost 15 years, the stock went down 14 per cent.
However, Canadian forestry companies and some natural gas companies, such as Encana, were in high demand on the market due to the believe that Japan will need lots of lumber and alternative fuel sources as they rebuild.
Japan’s central bank pumped another $61.2 billion into the financial system Tuesday to quell fears that the country’s banks could be overwhelmed by the impact of the massive earthquake and tsunami.
The injection of 5 trillion yen comes a day after the Bank of Japan fed a record 15 trillion yen into money markets and eased monetary policy to support the economy.
The injections have helped stabilize currency markets.