Japanese PM Instructs BoJ to Ensure Financial Market Stability

Prime Minister Shinzo Abe instructed the Bank of Japan on Monday to ensure stability in financial markets, after last week’s decision by British voters to leave the European Union fueled uncertainty over the global economy and sparked selling of stocks worldwide.

The government held a meeting with the central bank to discuss emergency steps, with Abe also instructing Finance Minister Taro Aso to keep in close contact with other Group of Seven economies and respond quickly and flexibly to the situation.

“Uncertainty and risk concerns remain in financial markets. It is important to continue to try to stabilize markets,” Abe said at the meeting held before the opening of the Tokyo stock market.

“We need to pay close attention (to the Tokyo market),” Abe said. The government “must take all possible measures to prevent any negative impact on Japan’s real economy, particularly small and medium-sized businesses.”

The key Nikkei stock index regained part of the hefty loss it suffered on Friday, while the yen, which surged late last week with Japanese authorities hinting at interventions to curb its excess volatility, moved narrowly against the U.S. dollar in the morning.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza