Japan vows action to ensure market stability as virus curbs weigh

TOKYO: Japan's government and central bank policymakers on Thursday agreed to watch market moves carefully and take coordinated action as needed, as its capital city braced for a state of emergency to stem record rises in new coronavirus cases.

"We agreed that market stability was extremely important," Kenji Okamura, vice finance minister for international affairs, told reporters after meeting counterparts from the Bank of Japan (BOJ) and the Financial Services Agency (FSA) banking regulator.

"The government and the BOJ will monitor market moves carefully and act as one if needed," said Okamura, who oversees currency policy at the Ministry of Finance.

Senior officials of the BOJ, finance ministry and FSA meet once every few months, usually when markets turn volatile or when policymakers see the need to warn against excessive rises in the yen that could hurt Japan's export-reliant economy.

The dollar languished near its lowest level in nearly three years on Thursday after Democrats won control of the U.S. Senate, clearing the way for a larger fiscal stimulus under President-elect Joe Biden.

The dollar stood at around 103.20 yen on Thursday, after dipping to 102.595 on Wednesday for the first time since March.

Prime Minister Yoshihide Suga on Thursday declared a state of emergency in Tokyo and three surrounding prefectures from Friday, stoking fears of a renewed slump in the economy.