Market Report – Earthquake Rattles Chile’s Economy

In today’s market report… A massive earthquake in Chile over the weekend that claimed more than 700 lives may cause billions of dollars in economic damage.

The killer quake in the world’s biggest copper producer toppled buildings and slammed infrastructure, sending a tsunami wave across the Pacific.

Eqecat, a firm modeling catastrophic risk for insurers, says the potential damage may be $30 billion, equal to 15 percent of Chile’s GDP.

After contracting in 2009, the central bank had predicted before the quake that the Chilean economy would grow by 5.5 percent.

On Monday, Asian shares linked to mining rose on ideas of increased demand in the wake of the 8.8 magnitude tremors.

Up to one-fifth of Chile’s capacity was shut after the quake, as disruption to the power supply threatened recovery.

Shares of smelters and miners rose from Sydney to Shanghai, as copper prices jumped sharply after one of the most powerful earthquakes in the last century.

Foto: NTDTV