Japan raised the severity of its nuclear crisis to a level par with the Chernobyl disaster in 1986.Although the claims by Japan are disputed by many sources, the effects on the entire world economy will be great.
Japan products like cars, consumer electronics, goods and services are under heavy scrutiny as they strive to maximise production in these trying times.
The Chernobyl disaster has caused a huge dent on the world economy at that time. However, you don't need a similarly disatrous event to get the same effect. As countries all over the world are more inter-related now than ever before, a small event could well be a market-moving factor. News travels faster now than in 1986.
To compare Fukushima and Chernobyl might be an overstatement. If it is, the markets will definitely react. The rise of the Japanese Yen for the past week has to be addressed intelligently by the Japanese government.
The markets are making a sustainable recovery right now. So are the economies around the world. As the rising commodity prices lately may be spooking investors,Japan's disaster effects in the near term, is all but over.
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