Japan has outlined steps to ease its ailing banks after stocks in Tokyo hit their lowest level since 1982.
With no apparent end in sight to the market turmoil, Japan’s government announced plans to extend recapitalisation to its top banks with worries shareholdings could be exposed.
But, despite concern among G7 leaders at the volatility in Japan’s currency, Prime Taro Aso said a strong yen was not all doom and gloom.
“A strong yen isn’t all bad for Japan. We’ve got to
think of the positive. Newspapers only write negative stuff and write about it as if the nation was about to go bust tomorrow but that isn’t true,” he claimed.
Seeing a 13-year high against the dollar, Japan’s currency has been strengthening as the difference between its relatively low interest rates and the rest of the world falls. The equalisation has seen traders buying heavily into the yen.
With worries the US, its biggest trade partner, is on the brink of a big downturn there are also fears Japan’s exports will be severely hurt through its strong currency value.