Nikkei up actually as we speak ,,
Japan Nikkei 225 ^N225 11:49PM 14142.06 +34.17 +0.24%
Japan PM tells MOF Sakakibara to work with G7-Jiji
TOKYO, Sept 1 (Reuters) - Prime Minister Keizo Obuchi told his top financial diplomat Eisuke Sakakibara on Tuesday to cooperate with the rest of the Group of Seven industrial nations on the falls in global stock markets, Jiji news agency reported.
''The prime minister instructed me to contact the G7 and deepen our cooperation,'' Sakakibara, vice finance minister for international affairs, was quoted as saying.
Sakakibara was speaking after being called to Obuchi's official residence to explain the present situations in currency and stock markets, Jiji said.
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Japan should not interfere with markets--Miyazawa
TOKYO, Sept 1 (Reuters) - The Japanese government should not artificially interfere in financial market movements as a basic principle, Finance Minister Kiichi Miyazawa said on Tuesday.
''As long as transactions are conducted freely, basically we should not interfere. However, there are times when some disturbances occur to hinder markets from functioning normally.
In such a case, for example in the foreign exchange market, we may intervene to a certain extent,'' Miyazawa said.
''This would be an act to recover normal market functions,'' he told a special committee of the Lower House of parliament.
But this was a general principle and he said he did not want to be misunderstood.
''When I say such a thing, foreign wire services will say right away that the Japanese government is now leaving the foreign exchange market on its own. I am not saying that. I am talking about a general principal.''
Japan govt spokesman says closely watching stocks
TOKYO, Sept 1 (Reuters) - Top government spokesman Hiromu Nonaka said the Japanese government was closely watching Tuesday's movements in Tokyo stock prices with great interest.
Asked about falls in the U.S. and Japanese stocks markets at a regular news conference, Nonaka said: ''We recognise that American stock prices marked their second-largest decline (on Monday). We are closely monitoring today's movements of Japanese stocks on the Nikkei average with great interest.''
EPA's Sakaiya watching U.S. stock moves closely
TOKYO, Sept 1 (Reuters) - Japan's Economic Planning Agency Minister Taichi Sakaiya said on Tuesday that he was watching moves in U.S. stock markets carefully, but added it was dangerous to term it a freefall.
''We are watching the quick fall in U.S. stocks with grave caution,'' Sakaiya said. ''But it is dangerous to call it a freefall.''
He added that it was too early to say whether the fall in U.S. stocks was causing a chain reaction in global financial markets.
Sakaiya said Japan's economy was going through ''the darkest period'' and that the effects of the government's tax cuts may not materialise unless consumer and business sentiment improve.
Asked whether he thought Japan's economy was in its worst stage, Sakaiya said: ''I think it will worsen a bit further, as the weakness in Japanese stocks is likely to dampen sentiment.''
Sakaiya also said:
*Recent strengthening in the yen was due to weakening in the dollar, which was caused by a fall in U.S. stocks.
*Does not believe there has been a big change in the yen's movements.
*Strengthening in the yen from around 143 yen to the dollar to 139 yen will not have a drastic impact on Japan's economy, including exports.
*The fall in U.S. stocks were mainly caused by the situation in the Russia.
*Recent moves in U.S. stocks mean Japan must quickly resolve its economic problems. Financial sector steps are the most important for the nation's economy.
TOKYO, Sept 1 (Reuters) - Investors around the world believe that Japanese government bonds are a good buy, Finance Minister Kiichi Miyazawa said on Tuesday.
Asked about a fall in the yield of the key 10-year JGB below one percent on Tuesday, Miyazawa told a news conference: ''Everybody believes Japanese government bonds are a 'buy'. Such an opinion is becoming stronger around the world.''
Miyazawa said it was ''foolish'' for a private rating agency to consider downgrading JGBs. U.S. rating agency Moody's Investors Service put Japan's credit ratings under review with negative implications on July 23.
Asked about Tuesday morning's falls in Tokyo stocks, Miyazawa said: ''There are those who buy and those who sell.''
Asked if the dollar's overnight fall below 140 yen was being affected by stock price falls in New York, Miyazawa said: ''Yes, I think so.''
He said U.S. Federal Reserve Chairman Alan Greenspan had repeatedly warned that U.S. stock prices were too high, and the fall was within the expectations of U.S. monetary authorities.
Although the extent of the fall was expected, the pace was too rapid, and this was something to be vigilant about, he said.
''Greenspan has warned again and again. It's not something that the authorities did not predict. The direct reason may have been the fact that the outlook for the Russian situation is becoming difficult,'' he said.
Miyazawa said he did not see a need to convene a meeting of Group of Seven deputies on Russia at the moment.
It was first up to Russia to tell the world what it was planning to do, and there was little that a meeting of G7 deputies could do now.
''G7 deputies are talking on the telephone all the time. At the moment I think that is sufficient,'' he said. |
