The combined earthquake and tsunami in Japan has resulted in untold human loss, massive infrastructure destruction and fear in the markets. It is important for active investors to keep track of stocks that will be affected by the fallout of the crisis. The potential nuclear meltdown in Japan adds another layer to this crisis, as Japan represents the 3rd largest economy in the world by nominal 2010 GDP.
Below are list of stocks and ETFs seemingly most affected by the catastrophe unfolding in Japan.
iShares MSCI Japan Index (ETF) || NYSE:EWJ || 1-week performance: -8.10%
Exchange Traded Fund | iShares ETFs | USA
An ETF representing the largest companies in Japan, the top holdings include Toyota Motor, Honda, Mitsubishi and Canon. Many firms in Japan have closed operations instead dealing with inconsistent power supply and broken infrastructure.
CurrencyShares Japanese Yen Trust || NYSE:FXY || 1-week performance: +5.07%
Exchange Traded Fund | CurrencyShares ETFs | USA
Japanese government and companies will need to repatriate their dollar savings into yen to fund reconstruction efforts. The G-7 plans to intervene to keep the yen low against the dollar, creating even more volatility in the currency.
Toyota Motor Corp. || NYSE:TM || 1-week performance: -6.24%
Consumer Goods | Auto Manufactures – Major | Japan
Toyota is Japan’s biggest car-maker and halted production at two facilities that produce 420,000 cars combined targeted for overseas markets.
Cameco Corporation || NYSE:CCJ || 1-week performance: -24.99%
Basic Materials | Industrial Metals & Minerals | Canada
Cameco is a leading company in the exploration and production of Uranium for use in nuclear power plants. The growing nuclear crisis in Japan has forced all nations to reconsider the future of nuclear power.
AFLAC Inc. || NYSE:AFL || 1-week performance: -9.43%
Financial | Accident & Health Insurance | USA
Aflac insures 1 in 4 households in Japan. The company will be fine if the death toll estimates remains below 20K, but a nuclear meltdown could complicate its outlook.
Tiffany & Co. || NYSE:TIF || 1-week performance: -8.03%
Services | Jewelry Stores | USA
Japan accounts for nearly 23% of worldwide luxury good sales and almost 19% of total sales for Tiffany. A quick look at the 10-Q filling tells you Japan’s percentage of Tiffany’s total sales grew to 25% over the last nine months.
Apple Inc. || NASDAQ:AAPL || 1-week performance: -3.47%
Technology | Personal Computers | USA
Japan’s crisis could cause logisitical problems and supply shortages for iPad components. According to iSuppli, iPad2 has five parts made in Japan:
~NAND flash from Toshiba
~DRAM from Elpida
~Compass from AKM Semi
~Touchscreen overlay glass from Asahi Glass
~System battery from Apple Japan.
Semiconductor HOLDRs || NYSE:SMH || 1-week performance: -2.22%
Exchange Traded Fund | HOLDRs ETFs | USA
According to VLSI Research, Japan accounts for nearly one-fifth of the world’s supply of silicon wafers used to make semiconductors Japan is also home to a large number of manufacturers for a key material in liquid-crystal-display panels.