The economic aftershocks from the massive earthquake off the coast of Japan, the resulting tsunami and a feared nuclear meltdown could hit global production of everything from aircraft to iPads.
Panic selling sent Tokyo shares down 10.55 per cent on worries the nuclear crisis would become a catastrophe Tuesday, after radiation levels near a quake-stricken nuclear plant surged following explosions and a fire.
The Nikkei index closed off 1,015.34 points at 8.605.15.
With ports, airports, highways and manufacturing plants across Japan shut down, the government has predicted "considerable impact on a wide range of our country's economic activities".
Singapore bank DBS estimated the quake and tsunami would cost Japan's economy $100 billion, equivalent to about two per cent of its gross domestic product.
And the ripples are just beginning to register in the global economy.
"Already, we're seeing reports predicting shortages of components that could ultimately create delays and/or increase the prices of our favorite gadgets," the respected tech website Engadget wrote Monday.
Pricing for some flash memory has already jumped 18 per cent according to DRAMeXchange-on news that Japanese tech firm Toshiba had suspended operations at a chip plant in hard-hit Iwate prefecture, Engadget reported.
Much of the NAND flash memory, for instance, for the Apple's new iPad 2 comes from Toshiba, Engadget added.
Japan manufactures more than 40 per cent of the world's electronic components, according to brokerage firm CLSA.
"Japan remains critical to the global tech food chain," Bhavtosh Vajpayee, CLSA's head of technology research, said in a report.
"Despite its market share losses in the last decade, Japan still dominates many parts of the tech supply chain, while contributing meaningfully elsewhere."
Factories also require raw materials and a working transport network-all of which pre-supposes the availability of fuel and electricity.
On Monday, authorities put into action plans for rolling power blackouts in areas served by Tokyo Electric Power Co (TEPCO) to make up for the loss of electricity from the country's crippled nuclear plants.
The beleaguered power company said the measures affected an area covering some parts of Tokyo and eight prefectures.
"Sony has stopped or limited production at eight manufacturing plants as it ascertains damage and waits for power to be restored," Engadget said, adding that Sony-built rechargeable batteries would be affected as well as CDs, DVDs and Blu-ray discs.
Panasonic, Fujifilm, Nikon, and Canon have all shut down factories in the affected regions related to the production of digital cameras and lenses, Engadget added.
Toyota, the world's biggest automaker, has suspended production at all its plants-and its subsidiary vehicle manufacturers-in Japan "from March 14 through March 16", the company said in a statement on its website.
News Source: The Daily Sun