01:00Mandatory credit: Prime Minister's office of Japan
Chief Cabinet Secretary of Japan Yoshimasa Hayashi stressed that the government 'will continue to closely monitor developments in the exchange market' during a statement in Tokyo on Tuesday, following Monday's drop in the stock market.
"It is important to make decisions in a calm manner, and we will continue to watch developments in the economic and financial markets at home and abroad with a sense of urgency, while taking all possible measures to manage the economy and public finances," he said, stressing the importance 'for the exchange rate to remain stable, reflecting fundamentals'.
Hayashi announced that to solve current issues and 'understand and analyse market trends', the Financial Services Agency has already held meetings with the Commissioner of the Financial Services Agency and 'established a reporting system in cooperation with both inside and outside of the Agency'.
The comments came after the Nikkei 225 index of leading stocks in Tokyo recorded a drop of 4,451 points on Monday and has closed a whopping 12 percent down amid concerns regarding the performance of the US economy and a widespread selloff across Asia that impacted global markets.
It started on Friday after Washington released a job report that turned out worse than expected and raised fears over a possible recession in the US. Additionally, the Bank of Japan increased interest rates to tackle inflation, bolstering the yen against the US dollar and negatively affecting export-dependent stocks.
Monday's drop is considered the largest drop in Japanese history, drawing comparisons to the 1987 Black Monday stock market crash when the Nikkei suffered a decline of over 3,836 points.
Japan to 'closely monitor' developments in stock market following biggest drop since 1987
Chief Cabinet Secretary of Japan Yoshimasa Hayashi stressed that the government 'will continue to closely monitor developments in the exchange market' during a statement in Tokyo on Tuesday, following Monday's drop in the stock market.
"It is important to make decisions in a calm manner, and we will continue to watch developments in the economic and financial markets at home and abroad with a sense of urgency, while taking all possible measures to manage the economy and public finances," he said, stressing the importance 'for the exchange rate to remain stable, reflecting fundamentals'.
Hayashi announced that to solve current issues and 'understand and analyse market trends', the Financial Services Agency has already held meetings with the Commissioner of the Financial Services Agency and 'established a reporting system in cooperation with both inside and outside of the Agency'.
The comments came after the Nikkei 225 index of leading stocks in Tokyo recorded a drop of 4,451 points on Monday and has closed a whopping 12 percent down amid concerns regarding the performance of the US economy and a widespread selloff across Asia that impacted global markets.
It started on Friday after Washington released a job report that turned out worse than expected and raised fears over a possible recession in the US. Additionally, the Bank of Japan increased interest rates to tackle inflation, bolstering the yen against the US dollar and negatively affecting export-dependent stocks.
Monday's drop is considered the largest drop in Japanese history, drawing comparisons to the 1987 Black Monday stock market crash when the Nikkei suffered a decline of over 3,836 points.
Mandatory credit: Prime Minister's office of Japan
Chief Cabinet Secretary of Japan Yoshimasa Hayashi stressed that the government 'will continue to closely monitor developments in the exchange market' during a statement in Tokyo on Tuesday, following Monday's drop in the stock market.
"It is important to make decisions in a calm manner, and we will continue to watch developments in the economic and financial markets at home and abroad with a sense of urgency, while taking all possible measures to manage the economy and public finances," he said, stressing the importance 'for the exchange rate to remain stable, reflecting fundamentals'.
Hayashi announced that to solve current issues and 'understand and analyse market trends', the Financial Services Agency has already held meetings with the Commissioner of the Financial Services Agency and 'established a reporting system in cooperation with both inside and outside of the Agency'.
The comments came after the Nikkei 225 index of leading stocks in Tokyo recorded a drop of 4,451 points on Monday and has closed a whopping 12 percent down amid concerns regarding the performance of the US economy and a widespread selloff across Asia that impacted global markets.
It started on Friday after Washington released a job report that turned out worse than expected and raised fears over a possible recession in the US. Additionally, the Bank of Japan increased interest rates to tackle inflation, bolstering the yen against the US dollar and negatively affecting export-dependent stocks.
Monday's drop is considered the largest drop in Japanese history, drawing comparisons to the 1987 Black Monday stock market crash when the Nikkei suffered a decline of over 3,836 points.