Japan Economy Sound Despite Sinking Stocks, but Oil, US Economy Are Concerns, Officials Say.
Japan's economy is still on a recovery track despite recent declines in Tokyo stocks, though concerns remain about higher oil prices and a possible U.S. economic slowdown, Cabinet ministers said Tuesday.
Finance Minister Fukushiro Nukaga said he remains confident in Japan's economy despite recent declines in Tokyo stocks to their lowest levels in 18 months. "My basic view is that the economy remains in a recovery trend," Nukaga said at a news conference. "I think the recovery trend will continue."
Economy Minister Hiroko Ota made similar remarks at a separate news conference, suggesting that the government may not be as worried as business leaders about the continuing drop in domestic stock prices. The benchmark Nikkei 225 stock index was down 0.3 percent by midday Tuesday to 14,458.74, its lowest point since July 2006. The index fell 1.3 percent Monday and 4 percent Friday.
Fujio Mitarai, chairman of Japan's biggest business lobby, known as Nippon Keidanren, said Monday that Japanese stocks are "oversold" considering healthy corporate earnings and an expected acceleration in Japan's growth later this year. Worries over the yen's recent rebound against the dollar and the murky outlook for the U.S. economy, which buys more Japanese exports than any other nation, have been dragging on Tokyo stocks.
Soaring global crude oil prices are also generating concerns. "It's necessary to watch whether a U.S economic downswing and rising crude oil prices will stand in the way of growth in Japanese exports and corporate profits," Ota said.
Nukaga said the government would work hard to quickly pass its supplementary budget for the current fiscal year ending March and its national budget for fiscal 2008, both of which contain measures aimed at easing the impact of high oil prices. "(Expensive) oil could affect consumer sentiment as well as profits at small and medium-size companies," he said. "We must act to have the budget bills passed soon." The next regular parliamentary session is set to start Jan. 18.
Japan's economy is still on a recovery track despite recent declines in Tokyo stocks, though concerns remain about higher oil prices and a possible U.S. economic slowdown, Cabinet ministers said Tuesday.
Finance Minister Fukushiro Nukaga said he remains confident in Japan's economy despite recent declines in Tokyo stocks to their lowest levels in 18 months. "My basic view is that the economy remains in a recovery trend," Nukaga said at a news conference. "I think the recovery trend will continue."
Economy Minister Hiroko Ota made similar remarks at a separate news conference, suggesting that the government may not be as worried as business leaders about the continuing drop in domestic stock prices. The benchmark Nikkei 225 stock index was down 0.3 percent by midday Tuesday to 14,458.74, its lowest point since July 2006. The index fell 1.3 percent Monday and 4 percent Friday.
Fujio Mitarai, chairman of Japan's biggest business lobby, known as Nippon Keidanren, said Monday that Japanese stocks are "oversold" considering healthy corporate earnings and an expected acceleration in Japan's growth later this year. Worries over the yen's recent rebound against the dollar and the murky outlook for the U.S. economy, which buys more Japanese exports than any other nation, have been dragging on Tokyo stocks.
Soaring global crude oil prices are also generating concerns. "It's necessary to watch whether a U.S economic downswing and rising crude oil prices will stand in the way of growth in Japanese exports and corporate profits," Ota said.
Nukaga said the government would work hard to quickly pass its supplementary budget for the current fiscal year ending March and its national budget for fiscal 2008, both of which contain measures aimed at easing the impact of high oil prices. "(Expensive) oil could affect consumer sentiment as well as profits at small and medium-size companies," he said. "We must act to have the budget bills passed soon." The next regular parliamentary session is set to start Jan. 18.
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