Japanese govt promises to support earthquake-hit companies

The Japanese government on Monday promised to support companies affected by a series of quakes on the southern manufacturing hub of Kyushu but declined to say whether the disaster would affect the timing of a sales tax hike next April.

Chief Cabinet Secretary Yoshihide Suga told a news conference that the government would give necessary financial support including companies impacted by the quakes and the government could utilise reserved fund of 350 billion yen (nearly $3.24 billion or Rs 21,554.91 crore) as needed.

The Japanese share market plunged more than 3% on Monday after earthquakes measuring up to 7.3 magnitude struck south-western Kyushu island, killing at least 42 people and forcing major companies to close factories.

Companies such as Toyota Motor Corporation, Honda Motors Corporation, Sony Corporation, among others have already suspended productions due to the earthquake in south-western Japan.