Japan hit by massive 8.9 magnitude earthquake

A massive 8.9 magnitude quake hit northeast Japan on Friday, triggering a 10-metre tsunami that swept away everything in its path, including houses, cars, farm buildings on fire and boats, media and witnesses said.

Key points

- Quake triggers tsunami up to 10 metres (30 feet), waves sweep across farmland, sweeping away homes, crops, vehicles, triggering fires. Tsunami warnings up to 10 metres (30 feet)

- Several people buried in landslide. One person reported killed.

- Power cut to four million homes in and around Tokyo

- Many sections of Tohoku expressway serving northern Japan damaged. Major fire at Chiba refinery near Tokyo.

- Bullet trains to the north of the country stopped

- Tokyo's Narita airport closed, flights halted, passengers evacuated. Tokyo underground, suburban trains halted.

- Eight military planes scrambled to survey damage. Prime Minsiter Naoto Kan orders military to do utmost to act in response to quake. Cabinet to meet. The government says more tsunami possible.

- Central bank vows to do utmost to ensure financial market stability

- Several nuclear power plants shut down automatically. At least one station operating normally.

Commentary:

Yasuo Yamamoto, Senior Economist, Mizuho Research Institute, Tokyo

"We still don't know the full scale of the damage, but considering what happened after the earthquake in Kobe, this will certainly lead the government to compile an emergency budget.

"The government would have to sell more bonds, but this is an emergency, so this can't be avoided.

"Given where the Bank of Japan's benchmark interest rate is now, they can't really lower rates. The BOJ will focus on providing liquidity, possibly by expanding market operations.

"There are car and semiconductor factories in northern Japan, so there will be some economic impact due to damage to factories. We can expect consumption to fall. This could temporarily pull down gross domestic product."