Japan's corporate giants count cost of earthquakes

The Japanese stock market slumped as manufacturing giants in the world’s third-largest economy scrambled to deal with a brace of devastating earthquakes.

The Nikkei fell 3.4% as investors assessed the impact of two large quakes in the Kumamoto region, which have killed at least 42 people.

Toyota shares fell as the car giant suspended production. The company will halt much of its manufacturing at plants across Japan until Saturday, restarting when parts become available. It will reportedly churn out 50,000 fewer vehicles as a result.

The earthquakes caused serious damage to roads, bridges and tunnels, which weighed on the shares of insurers and utilities firms.

Sony said its plant making image sensors for smartphones would remain closed as it assessed the damage. Honda suspended operations at its motorcycle plant near Kumamoto on Friday.

Corporate shares were also hit by a strengthening yen as investors piled into the safe-haven currency amid gloomy prospects for oil.

“We’re seeing a perfect storm of the kind of negativity that feeds into people’s fears and underscores the dangers lurking in a market where sentiment is very sensitive,” said Stefan Worrall of Credit Suisse.