Japan Government Says Ready to Act if Needed to Calm Market

Japan is ready to “take appropriate measures,” if necessary, to quell volatility in the financial markets, a top government spokesman said Tuesday.

Chief Cabinet Secretary Yoshihide Suga told reporters that Japan’s economy, the world’s third-largest, is still “on track for a moderate recovery,” despite the roller-coaster market gyrations of recent weeks.

But Suga acknowledged that recent swings in share prices and foreign exchange markets have taken a toll.

“What is important is to be alert to developments at home and abroad,” said Suga, who added that Japan was prepared to work with other major industrial nations to handle the global market declines.

“If necessary, we are going to take appropriate measures,” Suga said, without giving any details.

On Tuesday, Japan’s main share index, the Nikkei 225, sank 4 percent to 17,806.70 in a session that saw the benchmark swing between positive and negative territory. It fell 4.6 percent on Monday.

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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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