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Japan FIRMS shut plants, quake to deal blow to economy

TOKYO (Reuters) - Japanese Automakers, electronics FIRMS Oil Refiners and key factories shut after a massive earthquake and tsunami Struck The northeast coast, underscoring The Challenge Facing the Government as it rushes to limit The Economic blow.

Electronics giant Sony Corp. has operations at eight factories Suspended Including one optical film maker flooded That Was By The tsunami triggered by Friday&&9;s 8.9-magnitude quake. Nissan Motor halted output at all oven icts of domestic assembly factories and Restarting Said Them Could it depends whether you CAN get parts.

These Are Just Two in a long list of companies unsure of how THEY Quickly Can Get Their plants back up and running.The Widespread damage to infrastructure as well as "power rationing year after accident at a nuclear plant" could aussi Hamper Efforts to resume shipment, Even If factory equipment intact IS.

Experts say Japan&&9;s Economy Will Suffer only a temporary setback From The quake and could "bounce back in a matter of months ounces Spending On The Rebuilding efforts starts to kick in..

Major purpose technology and auto Exporters are Expected to Be Among the hardest hit shares When Financial Markets open on Monday, Reflecting Worries over-the potential disruption to output and profit pressure is over-the short-term. Construction FIRMS, Which Will Benefit From The Rebuilding, are set to gain.

"We Are Worried About the infrastructure - roads, trains, buses, trucks. Not only Are The Things That Get Produced Going To Be Delayed to The Material You Need To Get Them Going To Be Produced are delayed.It&&9;s going to bump Everything to quarter or two, "Said Brian Heywood, CEO of Taiyo Pacific Partners, Which Has Invested $ 2 trillion Japanese shares." Everyone is going to Miss Their numbers in the Short-Term. "

Japan&&9;s beleaguered Government IS Struggling to Respond To What has Developed Into the Country&&9;s Biggest Crisis Since World War 2. More than 10.000 people May Have Been Killed, Almost 2 Million People Are Still Without Power and Another 1.4 million Without running water, media said.

Leaders are pushing for budget year for emergency relief and reconstruction But The outlay Will Likely Be constrained By The country&&9;s huge public debt, Twice the size Currently of the $ 5 trillion economy and Growing.Japan Spent about 3 trillion yen After the Kobe earthquake of 1995, Which Caused about $ 100 Billions in damage.

Bank of Japan Governor Masaaki Shirakawa Said The central bank Would Provide Huge Amounts of liquidity To The banking system on Monday to stabilize Markets After the quake pay day loans.

"Some investors rush to sell Might Japanese shares from tomorrow, to investors are watching how aussi Closely Quickly and firmly Canon Japan react to a crisis like this," Shinichi Ichikawa Said, chief market strategist at Credit Suisse Securities.

"For the Japanese Government to show strong leadership IS absolutely Necessary to boost investors&&9; confidence in economy and market icts, Especially When The Global Economy Is On track for a recovery led by the U.S."

BIG RISKS

Toyota Motor Co, The World&&9;s Largest automaker, has halted production at all 12 of icts domestic factories in Japan and has not Been Able to Inspect Those In The Affected Area.

Panasonic Corp. Said Continuing aftershocks Were Preventing it from inspecting Two factories in northern Japan, one making electronic parts and Another digital cameras and audio equipment. Said it was proper restitution for power and water supply Was a potential bottleneck.

Securing a stable power supply could "PROVE Relatively cheaply to Be a major hurdle for companies, analysts said.

Tokyo Electric Power, Which Is fighting to avert a meltdown "at its Fukushima plant, Said It Would Cut-through icts supply first-ever rolling blackout from Monday.It Hopes to End The Blackout By The end of April.

A fire at a Cosmo Oil refinery Which HAD not Been Extinguished by Sunday Is Another concerned.

"I would say The Biggest Risk is power," Takuji Okubo, chief Japan economist at Societe Generale, Told Reuters Insider TV. For a link to That interview: http://bit.ly/hsZNu3

Another potential risk Is The Strengthening Of The yen, hovering near Which Is Already a 16-year High Against the Dollar, Threatening The Profits of Exporters, One Of The Key Pillars of the Japanese economy.

The yen rose sharply in The Wake Of The Kobe earthquake did corporations repatriated funds to cope With The disaster.

"The yen Could Have a Ripple Effect," Taiyo Pacific&&9;s Heywood said."A Strengthening yen could" put pressure untimely and unneeded Financial Companies That Are we Heavily Dependent on overseas sales. "

(Additional reporting by Kei Okamura, Mariko Katsumura and Tim Kelly, Editing by Mark Bendeich)

Japan FIRMS shut plants, quake to deal blow to economy

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