Japan to ensure stability in financial markets over Brexit: Abe

11, Apr. 2019

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TOKYO, Kyodo - Japan will go all-out to achieve stability in financial markets over Britain's delayed departure from the European Union while maintaining close international cooperation, Prime Minister Shinzo Abe said Thursday.

“Mindful of the risks to the global economy, financial and foreign exchange markets, the government is ready to ensure stability in the markets while coordinating closely with other nations concerned,” Abe told a meeting of Cabinet ministers convened to discuss the issue at the prime minister's office.

Abe's remarks came as leaders from the European Union agreed to extend Friday's Brexit deadline to Oct. 31, giving breathing space to British Prime Minister Theresa May, who has failed to garner enough support for a deal she negotiated with the other 27 bloc members.

Abe instructed Finance Minister Taro Aso, scheduled to attend from Thursday a two-day Group of 20 finance chiefs gathering in Washington, to “take appropriate action when necessary” in cooperation with Bank of Japan Governor Haruhiko Kuroda, who will also attend the meeting.

Uncertainty over Brexit, originally due to happen on March 29, has unnerved financial markets due to its potential disruption to businesses. Japanese automakers and other manufacturers have some production plants in Britain.

“I ask (the ministers) to respond flexibly, looking carefully at how the situation will unfold,” the prime minister said. (Kyodo)