As the Japanese earthquake and tsunami continue to take a human toll, the Australian share market is holding firm, slipping just 0.3 percent so far. Uranium stocks are the exception, as the race to cool and stabilise the vulnerable nuclear reactor that threatens to explode continues. Over the longer term, a greater impact is expected as Japan is one of Australia’s biggest trading partners, but on the flip side of that is the cost to rebuild and the need for resources to do so.
Some uranium companies have slipped between six and 23 percent since the Japan disaster. Energy Resources of Australia, the world’s fourth largest uranium producer, Paladin Energy, Extract Resources and Toro Energy have all been effected.
Internationally, despite the extent of the disaster and the massive impact on the people of Japan, a potential slow-down in China and the instability in the Middle East and North Africa are having a bigger impact on the markets. Perhaps this is due to an inherent faith in the Japanese ability to rebuild quickly and efficiently, as seen following the 1995 Kobe earthquake.
Though the US and European markets are trading lower, despite the situation in Japan, vigorous growth is still expected to be posted for the Asian region overall this year.
Photo credit: alexhoffordphotography.com