Economic Outlook: Japanese stocks upended

The influence of the Japanese economy is becoming clearer through a global reaction to the earthquake that shattered lives and finances Friday.

Estimates of the death toll have doubled from 10,000 to 20,000 and are likely to climb higher. Fear of a potential catastrophe at a nuclear power plant, now the site of several explosions, has become an immediate global concern with, potentially, hard to imagine consequences just around the corner.

Following a 6 percent drop Monday, the Nikkei 225 index lost 10.55 percent Tuesday, as investors pulled back from an export-oriented economy that has sputtered to a stop.

Auto and electronics producers have suspended work at scores of factories and those that are running could run into supply shortages soon as plants that make critical components run out as probable damage to roads and rail lines make deliveries difficult. If Nissan or Toyota or Honda can even make a car under these conditions, there is also the hurdle of damage to shipping ports that may get in the way.

U.S. automakers may have been diplomatically pleased that Toyota stumbled badly last year with massive recall problems, but nobody in peacetime wishes devastation of this sort on their worst enemies or fiercest rivals.

Across Asia, stocks were lower. The Shanghai composite index lost 1.41 percent while the Hang Seng index in Hong Kong plunged 2.86 percent. The Sensex in India dropped 1.47 percent. In Australia, the S&P/ASX 200 fell 2.11 percent.

On Wall Street, markets plunged early Monday, then recovered for much of the day, the Dow Jones industrial average closing 0.43 percent lower, the Standard & Poor's 500 off 0.6 percent. But 952 stocks on the New York Stock Exchange made advances, while 2,021 fell. Stock futures in New York indicate gains will be scarce on Tuesday.

In midday trading in Europe, the FTSE 100 index in Britain dropped 2.26 percent while the DAX 30 in Germany fell 4.33 percent. The CAC 40 in France plunged 3.6 percent while the regional Stoxx Europe 600 index lost 3.14 percent.