Dow moved up by 161 points...Is Japan the Biggest Threat to Markets?

Dow closed above 161 points...While the humanitarian toll is massive, economists are uncertain about the impact of the disaster on Japan's economy -- and, in turn, the world's recovery.

Some economists argue that the market is overreacting to Japan. The earthquake hit zone accounts for only a small part of Japan's economy. Second, Japan's share of the world's imports has been declining over the years. So the world is less dependent on demand from Japan. Third, Japan will have to rebuild its economy, which will boost demand for the industrials and basic material sectors.

Other market experts say the impact on the global economy will be short-term- maybe a quarter or two.

Still, investors worry about the impact on the auto and semiconductor sector, as several parts are still produced in Japan. And the nuclear crisis has put the spotlight on energy policy across the globe.

Heightened risk aversion is roiling the financial markets.

But Japan is far from the only risk to the markets.

http://www.thestreet.com/_yahoo/story/11050191/1/is-japan-the-biggest-threat-to-markets.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

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