The Ministry of Finance， the Financial Services Agency， and the Bank of Japan held a three-way meeting and agreed to “closely monitor” stock price fluctuations．

The Ministry of Finance, the Financial Services Agency, and the Bank of Japan held an information exchange meeting (trilateral meeting) on ​​international financial capital markets from 3:00 p.m. on the 6th. They discussed the volatility of the Nikkei average on the Tokyo stock market and the yen’s exchange rate on the foreign exchange market, and agreed that the outlook for improvement for the Japanese economy remains unchanged. This will be the first three-way meeting since March. Prime Minister Fumio Kishida also said at a press conference in Hiroshima on the 6th about the stock price fluctuations, “It is important to calmly assess the situation.” “We will continue to monitor the situation with a sense of urgency, and will work closely with the Bank of Japan to advance economic and fiscal management,” he said. The three-party meeting was held at the Ministry of Finance, and discussions were held among the Ministry of Finance’s Vice-Minister of Finance Jun Mimura, Financial Services Agency Commissioner Hideki Ito, and Bank of Japan Executive Director Tsuyoshi Kato. Speaking to reporters after the meeting, Mimura said that despite the current fluctuations, “we all agreed that there is no change in the outlook for a gradual improvement in the Japanese economy.” They also confirmed that the government and the Bank of Japan will closely monitor economic conditions both at home and abroad, and will work together in close communication to manage the economy and finances. Regarding exchange rates, they once again agreed that it is desirable for them to move in a way that reflects fundamentals (basic economic conditions). While saying that the government would refrain from commenting on stock prices, Mimura said, “Listening to market participants, there is a view that there has been a rapid global move toward risk aversion against the backdrop of concerns about a worsening economy overseas due to weak economic indicators and rising geopolitical tensions.” Regarding whether the Bank of Japan’s additional interest rate hike had an impact, he merely said, “Various factors are being discussed, and this is not something that can be analysed to determine what the factors were.” With stock prices falling worldwide, he said, “I myself am in contact with overseas authorities.” The three-way meetings began in March 2016 and have been held irregularly in response to sudden changes in financial and capital markets, such as the depreciation of the yen and soaring crude oil prices. The aim is to prevent market confusion by showing a willingness to hold joint discussions among the three parties. In addition to the Vice-Minister of Finance, the Commissioner of the FSA, and the Director General for Planning, the meeting is often attended by the Vice-Minister for Finance, who is responsible for macroeconomic research and coordination with the Bank of Japan, as well as senior international officials from the FSA and the Bank of Japan. The Nikkei Stock Average closed on the 5th at about 4,400 yen lower than the previous week’s close, its biggest drop ever, due to concerns about the future of the U.S. economy. With the Bank of Japan’s additional interest rate hike also raising concerns about the narrowing interest rate gap between Japan and the US, the yen temporarily hit a level of 141 yen to the dollar on the 5th, the highest level in about seven months, leading to a further fall in stock prices. On the 6th, the Nikkei Stock Average closed with a sharp rebound of 3,217 yen higher than the previous day. Market turmoil continues, with the yen trading at around 145 yen.

財務省･金融庁･日銀が3者会合、株価変動も「経済改善」 - 日本経済新聞

財務省と金融庁、日銀は6日午後3時から国際金融資本市場に関する情報交換会合（3者会合）を開いた。東京株式市場での日経平均株価の乱高下や外国為替市場での円相場について協議し、日本経済の改善見通しは変わらないとの認識で一致した。3者会合を開くの...

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