Friday, June 24, 2016

Japan concerned about Britain's decision to leave EU

The Japanese government on Friday expressed its concerns over a Britain's referendum result to leave the European Union, with rapid moves reflected the outcome affecting in both stocks and forex markets in Tokyo.

Finance Minister and deputy Prime Minister Taro Aso told reporters after the British "leave" camp won the poll that Japan is "very concerned over the risks to the global economy, finance and exchange markets," adding the government will monitor the situation "more than ever" and steadily take steps when needed so volatile movements do not continue.

On Friday, Tokyo shares ended sharply lower with its benchmark Nikkei stock index losing nearly 8 percent on Brexit, marking the worst fall in over 16 years.

The 225-issue Nikkei Stock Average plunged 1,286.33 points, or 7.92 percent, from Thursday to 14,952.02, after briefly tumbling over 8 percent by opening the afternoon session.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 94.23 points, or 7.26 percent, to 1,204.48.

Meanwhile, in the forex market, the Japanese yen briefly hit a record high in over two and a half years against the US dollar in the 99 yen zone, rising about 5 yen from the morning session.

Japan's central bank, the Bank of Japan (BOJ), said that it will "stand ready to provide sufficient liquidity, including utilizing swap arrangements" with the United States and European central banks to "ensure the stability of financial markets," according to local reports.

The BOJ governor Haruhiko Kuroda said in a statement that the BOJ "will continue to carefully monitor how the result affects global financial markets" in close cooperation with relevant domestic and foreign authorities.


  • Officials in the Japanese Foreign Ministry said the referendum result is extremely disappointing and may affect Japan's talks with the EU on their free trade agreement, said Japan's Kyodo News.

The government here will convene a meeting involving relevant ministers on the Brexit referendum.
 [Xinhua -globaltimes.cn]
24/6/16
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1 comment:

  1. EU leaders have insisted that the UK must move swiftly to negotiate leaving the organisation, saying any delay would prolong uncertainty...

    European Commission head Jean-Claude Juncker stressed the "Union of the remaining 27 members will continue"....BBC
    24/6/16

    ReplyDelete

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