Major earthquakes can significantly impact financial markets. One of the latest examples was in 2011: following the Tohoku earthquake, tsunami, and Fukushima disaster, Japanese markets crashed by 20%, causing a loss of hundreds of billions in market capitalization. TEPCO, the owner of the Fukushima nuclear plant, was nationalized, while Westinghouse Electric Company filed for bankruptcy in 2017.
Asset managers and private investors must consider seismic risks that can significantly impact their portfolios.
