Japanese CDS spreads widen as fears of nuclear disaster grow

Stock market drops while Japanese government implements economic stimulus in response to earthquake

As the Japanese authorities struggle to deal with the physical damage of Friday's massive earthquake, the economic impact has begun to make itself felt. By 1.00pm UK time today, credit default swap (CDS) spreads on the sovereign had reached 117 basis points, their highest point since December 2009, after widening from 94bp at close of play yesterday. The estimated death toll from the quake rose to more than 3,000 today, with at least 15,000 more people unaccounted for, while engineers attempt to