Tokyo (Reuters) – On Tuesday, Japanese leaders engaged in urgent discussions to address concerns and tensions regarding severe fluctuations in the country’s financial markets, with the Prime Minister calling for senior financial officials to hold an emergency meeting to discuss global stock sales.
Atsushi Mimura, the country’s senior currency diplomat, emphasized the close coordination between the government and the Bank of Japan, stating that officials from the Ministry of Finance, the Financial Services Agency, and the Bank of Japan held a trilateral meeting on Tuesday afternoon.
After the meeting, Mimura told reporters, “The government and the Bank of Japan agreed that it is crucial to monitor developments in domestic and international economic and financial markets with a sense of urgency while calmly assessing what is happening.”
Such meetings are usually convened during periods of market turbulence and fluctuations. A similar meeting was held in March this year following a sharp drop in the yen’s value.
On Monday, stocks fell globally following a sell-off that began last week.
The Nikkei stock index, after a 12.4% drop on Monday—the largest percentage decline since Black Monday in 1987—suddenly rose on Tuesday. Tuesday’s trading saw a 10.2% increase, bringing it to 34,675.46.
Mimura refrained from commenting on the factors behind the stock drop but noted that the three parties shared their views on the continued gradual improvement of Japan’s economy.
Japanese Prime Minister Fumio Kishida called for a cautious approach to market trends, emphasizing the importance of calming the market atmosphere. Referring to factors such as the first real wage increase adjusted for inflation in over two years in June, he expressed an optimistic outlook for the world’s fourth-largest economy.
Kishida told reporters in Hiroshima early on Tuesday, “We understand that Japan’s economy will continue to make a strong transition to a new phase.”
Japanese Finance Minister Shunichi Suzuki stated that the government would monitor and analyze financial market movements and work closely with relevant officials, including the Bank of Japan.
Suzuki said, “Achieving resilient economic growth while responding to upcoming changes is important.
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