By ERIKA KINETZ
AP Business Writer
Japan’s earthquake and nuclear crisis have put pressure on the already fragile global economy, squeezed supplies of goods from computer chips to auto parts and raised fears of higher interest rates.
The disaster frightened financial markets in Tokyo and on Wall Street on Tuesday. Japan’s Nikkei average lost 10 percent, and the Dow Jones industrials fell so quickly after the opening bell that the stock exchange invoked a special rule to reduce volatility.
Yet the damage to the U.S. and world economies is expected to be relatively moderate and short-lived. Oil prices are falling, helping drivers around the world. And the reconstruction expected along Japan’s northeastern coast could even provide a jolt of economic growth.