Japan's earthquake hits manufacturing, food construction sector is sought after

The magnitude 9 earthquake in Japan occurred in the past two weeks. The impact of this earthquake and its secondary disaster on the Japanese industrial chain continued. Because the northeastern region of Japan, which is the hardest-hit area, is an important industrial area in the country, and has concentrated many important factories such as automobiles, nuclear power, petrochemicals, and semiconductors, the earthquake has disrupted Japan's industrial chain.

With the development of post-disaster cleanup, the production status of the electronics and automotive industries in Japan is still not optimistic. However, the food and construction industry has “sniffed” opportunities and related individual stocks have been given opportunities for rebirth after the disaster.

Japan's food safety has become a global focus The Japanese government recently stated that a large number of vegetables from the Fukushima region have detected excessive radiation levels, while milk, tap water, and nearby Pacific waters have detected excessive radiation levels.

The U.S. Food and Drug Administration said on the 22nd that the U.S. will ban the import of milk and fresh produce from the area near the Fukushima Daiichi nuclear power plant. France, on the other hand, urged the European Commission to examine systems that monitor the radiation conditions of food and feed imported from Japan.

The South Korean government also held a meeting on food safety policy on the afternoon of 23rd. When there is serious concern about nuclear radiation pollution in imported foods in Japan, South Korea will stop the import of related foods in order to reduce people’s concerns about food safety and the potential for public health. The hazards. The German Ministry of Agriculture and Consumer Protection also stated on the 23rd that Germany has begun additional inspections of imported food from Japan to ensure that it is free from radiation contamination.

According to overseas media analysis, as Japanese farmland was flooded by tsunami, feed mills were washed away, and Japan imported more meat and fruit, the earthquake will inevitably lead to higher food prices. Some food stocks in Japan were favored by the funds. In the case of a general decline in the Japanese stock market on the 23rd, food stocks outperformed the broader market. In terms of individual stocks, Asahi Beer, the largest Japanese beer producer, soared 2.64% on the 23rd and Nissin Foods Holdings also gained 0.52%.

In addition, some construction stocks also performed brightly in response to the demand for post-disaster reconstruction. Japanese construction machinery manufacturer Komatsu Plant rose 0.11% on the 23rd, and Japan’s largest construction steel maker Tokyo Steel rose 1.54%.

On the same day, it was reported that the Tokyo Metropolitan Kanamachi Water Purification Plant had detected radioactive material and reminded residents of District 23 in Tokyo not to drink tap water to the baby. There are also problems with tap water after power, which makes investors feel uneasy. Affected by this, the Nikkei 225 fell 1.65% and fell below 9500 points.

"The company's output and people's spending will be in an abnormal state for at least the next six months," said Naoki Iizumi, senior economist at Tokyo-based Mizuho Financial Group. "The power shortage will continue to hinder economic activity."

Banks jointly found opportunities for the rise of Tokyo Electric Power's transfusion food and construction stocks in the earthquake, while the electronics and automotive industries were relatively unlucky.

Sony Corp., Japan’s largest exporter of consumer electronics products, said in a statement on the 22nd that the company’s efforts to shut down five factories in the central and southern regions until the end of the month, due to the difficulty of procurement of raw materials and materials due to power restrictions. Toyota Motor, the world's largest automaker, also said on the same day that all domestic auto assembly lines will be suspended until the 26th of this month, while Honda Motors also extended its production stoppage time.

Confusion in the supply chain has even affected Rio Tinto, the world’s second-largest iron ore producer. The company warned that its expansion plans are threatened. After the strong earthquake in Japan, the deadline for delivery of important equipment from some mining companies has been extended, and the suspension of production of large bulldozers and electronic products has also put more pressure on their production.

These companies were not only damaged by factors such as factory damage and suppliers unable to deliver, but were also affected by the nation’s fuel shortage and power outages in the Tokyo area. These factors disrupted the production and distribution of companies and affected employees to resume work.

Overseas media reported on the 23rd that Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group’s core bank subsidiaries are all considering providing loans to Tokyo Electric Power with a total amount of approximately 1.4 trillion yen. In addition, the four trust banks of Sumitomo Trust and Banking, Mitsubishi Central Mitsubishi Trust Corporation, Mitsubishi UFJ Trust Bank and Mizuho Holdings are considering providing approximately 600 billion yen in loans to Tokyo Electric Power.

Tokyo Electric Power’s Fukushima Daiichi nuclear power plant was severely damaged during the earthquake and tsunami, and caused a nuclear accident crisis. The company has therefore received much attention. According to media reports, Tokyo Electric Power will finance the damaged power plants in the earthquake and pay other fees.

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