TOKYO: Japanese Prime Minister Yoshihiko Noda on Friday reiterated Japan's readiness to help stabilise the eurozone while also vowing to take "every possible measure" to tackle the yen's historic rise.
"During the upcoming G20 summit, I will map out Japan's contribution to settling down the global economic crisis sparked from Europe," Noda told parliament.
"Our determination and capacity as politicians is challenged at a time like this when a storm blown from Europe is ripping through global financial markets."
He gave no details of the contribution.
Noda, who took office in September, is to make his full debut on the international diplomatic stage at the G20 on November 3 and 4 in the southern French city of Cannes.
His remarks, in a policy speech, came after Japan's Finance Minister Jun Azumi said Tokyo was ready to take "necessary measures" to help revamp the eurozone in the interests of its own economy.
After 10 hours of tense talks in Brussels, Europe's leaders on Thursday thrashed out a deal aimed at providing new funds to Greece in a bid to stop the region's crippling debt troubles leading to another global meltdown.
Japan has so far purchased around a fifth of the debt issued by the European Financial Stability Facility (EFSF), the continent's bailout fund, and has indicated its willingness to buy more.
Noda also said his government would cooperate with the Bank of Japan to curb the rise of the yen, which he said was accelerating a shift of production bases overseas and causing "valuable" jobs at home to vanish.
"A crisis of industrial hollowing continues in the wake of the historic appreciation of the yen," Noda said.
"If big companies move their bases overseas, their mid- and small business partners will follow suit and employment that must remain in our country may disappear," he said.
"We will take every possible measure to respond to the yen's appreciation and other issues by working together with the Bank of Japan."
The dollar was changing hands at 75.87 yen in early Asia trade, close to its latest post-war low of 75.66 yen touched in New York on Thursday.
A strong yen erodes the competitiveness of Japanese exporters and puts pressure on the economy, which is already struggling to recover from the effects of the March earthquake and tsunami.
The government has said it will secure an additional 15 trillion yen ($197 billion) in funds for currency market intervention when it compiles a planned extra budget for the current fiscal year.
On Thursday, the Japanese central bank announced further easing measures to help safeguard the country's fragile economic recovery from the impact of a record-high yen and the fallout from the eurozone crisis.
The bank said it would boost its asset buying fund by 5.0 trillion yen to 55 trillion yen ($723 billion) to help pour more liquidity into the market, with the extra amount earmarked for the purchase of Japanese government bonds.
- AFP/wk
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"During the upcoming G20 summit, I will map out Japan's contribution to settling down the global economic crisis sparked from Europe," Noda told parliament.
"Our determination and capacity as politicians is challenged at a time like this when a storm blown from Europe is ripping through global financial markets."
He gave no details of the contribution.
Noda, who took office in September, is to make his full debut on the international diplomatic stage at the G20 on November 3 and 4 in the southern French city of Cannes.
His remarks, in a policy speech, came after Japan's Finance Minister Jun Azumi said Tokyo was ready to take "necessary measures" to help revamp the eurozone in the interests of its own economy.
After 10 hours of tense talks in Brussels, Europe's leaders on Thursday thrashed out a deal aimed at providing new funds to Greece in a bid to stop the region's crippling debt troubles leading to another global meltdown.
Japan has so far purchased around a fifth of the debt issued by the European Financial Stability Facility (EFSF), the continent's bailout fund, and has indicated its willingness to buy more.
Noda also said his government would cooperate with the Bank of Japan to curb the rise of the yen, which he said was accelerating a shift of production bases overseas and causing "valuable" jobs at home to vanish.
"A crisis of industrial hollowing continues in the wake of the historic appreciation of the yen," Noda said.
"If big companies move their bases overseas, their mid- and small business partners will follow suit and employment that must remain in our country may disappear," he said.
"We will take every possible measure to respond to the yen's appreciation and other issues by working together with the Bank of Japan."
The dollar was changing hands at 75.87 yen in early Asia trade, close to its latest post-war low of 75.66 yen touched in New York on Thursday.
A strong yen erodes the competitiveness of Japanese exporters and puts pressure on the economy, which is already struggling to recover from the effects of the March earthquake and tsunami.
The government has said it will secure an additional 15 trillion yen ($197 billion) in funds for currency market intervention when it compiles a planned extra budget for the current fiscal year.
On Thursday, the Japanese central bank announced further easing measures to help safeguard the country's fragile economic recovery from the impact of a record-high yen and the fallout from the eurozone crisis.
The bank said it would boost its asset buying fund by 5.0 trillion yen to 55 trillion yen ($723 billion) to help pour more liquidity into the market, with the extra amount earmarked for the purchase of Japanese government bonds.
- AFP/wk
Business & Investment Opportunities
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