The move, first reported by the Nikkei news service, was said to have been prompted by the need to assure the supply of rare earth minerals.

FORBES: China, Trade Gangster, Pulls Off Stunning Caper

According to Japan's Nikkei news service, Apple had originally ordered 65 million iPhone screens for the 2013 January-to-March quarter from its suppliers which include Japan's Sharp Corp. and South Korea's LG Display Co.

CNN: Apple's share price falls to lowest in nearly a year

Apple is reported to have halved its orders for the display panel featured on the phone for the January to March quarter, according to the Nikkei Japanese news service.

BBC: Apple shares hit by iPhone 5 order fears

Stocks fell nevertheless directly after the news, with the Nikkei index registering an almost 2% decline, and futures indicating another 3 % decline for a total 5% fall.

FORBES: Japan Quake Fuels Economic Uncertainty

Japanese shares rose on the news of the stimulus with the Nikkei 225 index gaining 1.4%.

BBC: Japanese government approves $116bn stimulus package

The Nikkei 225 rebounded sharply from a 16-year low on the news, rising by almost 4% in a day.

ECONOMIST: Overview

The yen gained against the US dollar on the news from the Cabinet Office, while Tokyo's main Nikkei 225 stock index opened 1.6% higher.

BBC: Japan economy slows less than expected in last quarter

The Tokyo analyst expects the Nikkei to rise 30% by mid-1998, though a stronger yen may put a damper on the good news.

CNN: A PUNTER'S SURVIVAL GUIDE