Analysis: Japan disaster costs seen at least $180 billion

Even though some extreme projections of the longer-term costs project figures closer to $1 trillion over several years, standard tallies akin to those used after the Kobe quake hover around this level.

The world's third-largest economy, already saddled with public debt double the size of its $5 trillion output, must rebuild its infrastructure -- from roads and rail to power and ports -- on a scale not seen since World War Two.

Moody's Investors Service warned on Monday the huge financing needs Japan faces may erode investor confidence in the country's ability to repay its debts, forcing up borrowing costs.

"The earthquake may have shifted such a potential tipping point a bit forward, unless Japan's political parties are galvanized by the crisis to also address the country's long-term fiscal challenges," Moody's lead analyst Tom Byrne said in a statement.

The quake and tsunami have killed at least 10,000 people, officials estimate, striking a northeastern region that accounts for an estimated 6-8 percent of gross domestic product, compared with around 12.4 percent from the areas affected by the Kobe quake in 1995.

However, the loss of fixed assets and human capital from Friday's quake, which also triggered several explosions at a nuclear power plant north of Tokyo, looks to be far greater. It comes at a time when oil is hovering near a 2-1/2-year peak and other commodity prices remain elevated.

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