Natural calamities like the earthquake and the resultant tsunami in Japan may bring untold misery in their wake, but commodity investors may reap the benefit of reconstruction efforts.

As the reports of devastation started pouring in, the metals and minerals stocks on the TSX reacted by gaining 2.5%. The TSX’s reaction begs the question: are natural disasters good for commodities?

Only partly and selectively, said Doug Porter, deputy chief economist, BMO Capital Markets. “It’s been a mixed response; there isn’t a clear-cut message for commodities,” he says. “First of all, all of us are trying to get a grip on the extent of the devastation and how much damage we’re talking about exactly.”

As for commodities, he said the response has at best been mixed. “One measure of that is the Commodity Research Bureau’s (CRB) commodity price index [which] is actually down a little bit today.”

“Any commodities that have anything to do with rebuilding – apparently there will be billions spent on rebuilding – have benefited; like lumber and base metals, whereas other commodities that are driven by day to day activity, and perhaps by a little bit of speculative activity, have actually weakened a bit.”

He pointed out that oil prices fell today and that the disaster would have no implication for things like natural gas prices in North America.

Conceding some parts of the global economy will suffer as a result of the tragic events in Japan, Porter says that will partly be offset by the rebuilding effort that will ensue.

Today’s stock market activity suggests precious metals have somewhat benefited from Japan’s disaster. Porter only partly attributes this rise to the natural disaster.

Many market watchers fear a rapid rise in risk aversion could be another potential outcome of this blow. The massive Japanese earthquake brings about a spike in equity selling at a time when Asian markets are getting hammered by the effects of higher-than-forecast Chinese inflation.

Reader Alert:

Rogers and Fido wireless customers can text ASIA to 30333 to donate $5 to earthquake relief efforts. 100% of all donations will go to the Canadian Red Cross Japan Earthquake/Asia-Pacific Tsunami fund.

To help Canadians stay up-to-date on news and information from Japan, Rogers is making TV Japan available on free preview on Channel 829 to all digital cable customers.