Japan quake may erode investor confidence: Moody's

Japan's devastating earthquake and tsunami may accelerate the point at which investors potentially lose confidence in the country's finances, Moody's Investors Service said on Monday.

The agency noted Japan is still able to finance its deficits at "exceptionally low cost," but warned that investors could at some point demand higher yields on government bonds.

"The earthquake may have shifted such a potential tipping point a bit forward, unless Japan's political parties are galvanized by the crisis to also address the country's long-term fiscal challenges," Moody's lead analyst Tom Byrne said in a statement.

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