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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (711)	1/26/1998 1:54:00 AM
From: chirodoc	Respond to of 3902

U.S. Banking Panel Members Urge Japan ReformsBy Linda Sieg TOKYO (Reuters) - Members of the U.S. House of Representatives Banking Committee on Saturday urged Japan to open its markets, loosen its purse strings and reform its banking system to help cure Asian woes and ease American angst over Japan's trade surplus. But committee chairman James Leach told reporters he had received no pledges that Tokyo would indeed take further steps to stimulate its stalled economy. "Definitely, no," Leach said, when asked if he had received assurances that more fiscal measures were in the pipeline. "The government made clear that it might consider further steps if need demands at a later period of time. Qualitatively, that's a very large 'if'," said Leach, who met earlier with Japanese finance officials and ruling party members. "Government officials indicated that if the economy picks up, there may be no need. If it doesn't...they may consider possible further steps," he added. Leach, a Republican from Iowa, along with other members of the House Banking and Financial Service Committee, was in Tokyo after a swing through Hong Kong, Beijing and Seoul for a first-hand look at the turmoil hitting Asian markets and economies. Echoing a message sent with growing intensity by U.S. officials, panel members said action by Japan was vital to calm the Asian crisis and to ease pressure on the United States, faced with a potential flood of Asian exports. "In normal times, you might argue that European and American markets would be the markets of last resort. But some circumstances in both...have to be examined and demonstrate in each case that they are not capable of fully absorbing this," said committee member Maurice Hinchey, a New York Democrat. "In the United States, the huge and growing trade deficit that exists between the U.S. and the economies in this part of the world make it very difficult for the U.S. to absorb any more of the overproduction that exists here," Hinchey added. Leach also warned that an expected rise in America's trade deficit with Japan and other Asian nations would be met with growing U.S. concern. "We...can only suggest that there is going to be a great deal of U.S. public angst, and appropriate angst...and that there is a great responsibility for the largest economy in the region (Japan) to advance a demand-related growth that can accept imports as well as exports," he said. Japanese leaders have raised hopes of more steps with promises of "flexibility" but have stopped short of pledging the extra tax cuts urged by many. Ruling party policy chief Taku Yamasaki said on Friday the government was not planning any further stimulus steps in February, adding Japan's economy would improve now due to previously decided measures. Leach also said he was hopeful that U.S. Congress would approve added funding for the International Monetary Fund (IMF), needed to boost its resources after three costly rescue packages for Thailand, South Korea and Indonesia. But he added winning approval would be difficult. "All I can say is, those of us involved will...do the best we can," he said. Critics of the IMF on the political left and right are working together to block a U.S. administration request to approve some $19 billion to boost IMF resources.