Japanese Leaders Address Market Volatility Amid Sharp Swings

Japanese leaders, including the Prime Minister and top finance officials, convened an emergency meeting to address the sharp volatility in financial markets. The meeting emphasized close coordination to maintain economic stability. Despite recent declines, officials remain optimistic about the country's economic recovery.

Japanese leaders swiftly moved on Tuesday to ease concerns over the erratic fluctuations in the country's financial markets. Prime Minister Fumio Kishida urged the public to remain calm while senior finance officials convened an emergency meeting to tackle the global stock market sell-off.

The emergency session saw executives from Japan's Ministry of Finance, the Financial Services Agency, and the Bank of Japan (BOJ) come together. Atsushi Mimura, Japan's top currency diplomat, stressed the need for close coordination between the government and the central bank, emphasizing the importance of monitoring economic and financial market developments with urgency while maintaining a calm assessment.

Mimura highlighted that such gatherings typically occur during times of market turbulence as a signal of readiness to act. Stocks globally saw a downturn on Monday, but partially recovered on Tuesday. The Nikkei stock index experienced a 12.4% drop on Monday—its biggest since the 1987 Black Monday crash—only to soar by 10.2% on Tuesday, closing at 34,675.46. Prime Minister Kishida and Finance Minister Shunichi Suzuki both called for caution and resilience, citing ongoing economic recovery indicators.

(With inputs from agencies.)