Japan reacts to stocks plunge amid US tariff concerns

(MENAFN) The Japanese government is closely monitoring financial markets and economic developments both domestically and internationally with a sense of urgency, according to Chief Cabinet Secretary Yoshimasa Hayashi on Monday. This statement comes after Japanese stocks experienced a significant drop due to concerns surrounding the potential impact of increased U.S. tariffs.

Speaking at a regular press conference, the top government spokesman assured that the Japanese government will do "all it can" in managing economic and financial policy.

In a separate statement, Finance Minister Katsunobu Kato, who is also in charge of the Financial Services Agency, urged investors to approach the recent sell-off in the Tokyo stock market in a "calm" manner.

These remarks followed a sharp decline in Tokyo stock trading on Monday morning. The benchmark Nikkei stock index saw a temporary plunge of as much as 8.8 percent as sell-offs continued, fueled by growing fears of a trade war initiated by U.S. tariffs.

Analysts noted that the U.S. dollar briefly weakened against the yen, reaching the upper 144 yen zone, as the Japanese currency became a sought-after asset amid ongoing uncertainty about the U.S. tariffs and their broader effects on the global economy.

At midday, the U.S. dollar was trading at 146.62-63 yen, compared to 146.83-93 yen in New York and 146.27-29 yen in Tokyo at the close of trading on Friday.

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