Economic impact looms large amid massive loss estimates of Japan's quakes

TOKYO, Jan. 6 (Xinhua) -- In the aftermath of the earthquakes that struck central Japan on New Year's Day, the latest estimates by local economists have revealed a staggering scale of direct economic losses, local media reported.

The quake, which inflicted extensive damage on residences, factories, roads and other vital infrastructure in the disaster-stricken region, was projected to result in direct economic losses exceeding 800 billion yen (about 5.5 billion U.S. dollars), according to Takahide Kiuchi, the executive economist at Nomura Research Institute.

The preliminary assessment of the earthquake's economic impact stands at a whopping 816.3 billion yen, the national news agency Kyodo reported, citing the economist's estimate based on information currently available.

Kiuchi emphasized that this magnitude of economic loss was equivalent to a "considerable" portion of about 0.15 percent of Japan's nominal gross domestic product.

The economic repercussions are already manifesting, with major corporations feeling the impact. Due to the earthquake, 10 Toyota Motor Corporation sales outlets in the quake-devastated central Japanese prefecture of Ishikawa are currently unable to operate.

Additionally, uncertainty looms over Toyota's plans to commence new-year production next Tuesday, as the supply status of crucial components remains unclear.

On top of the economic challenges triggered by the earthquake, Sharp Corporation reported that its display factory in the city of Hakusan in Ishikawa has been unable to commence operations as scheduled, while electronic component manufacturer Murata Manufacturing announced that five of its factories in Ishikawa and Toyama prefectures were yet to resume operations.

At least 126 people have died after a series of strong temblors with a major one of 7.6 magnitude hit on Monday at a shallow depth in the Noto region of Ishikawa. (1 U.S. dollar equals 144.7 Japanese yen)