TOKYO, March 9 (Xinhua) -- A senior Japanese Finance Ministry official said Monday that excessive market movements are undesirable and could have a major adverse impact on the economy.
The remarks made at a press briefing by Yoshiki Takeuchi, vice finance minister for international affairs, followed Tokyo stocks plummeting more than 5 percent on concerns the spread of the COVID-19 could hamper the global economy.
Monday's monumental selloff saw investors switch to the safe-haven Japanese yen, which at one point saw the U.S. dollar diving to the mid-101 yen level, with the yen finally closing out at 102.22-25 yen against the U.S. dollar compared with 105.29-39 yen in New York and 105.79-80 yen at 5 p.m. on Friday in Tokyo.
The euro, meanwhile, was quoted at 1.1439-1441 dollars and 116.94-98 yen against 1.1275-1285 dollars and 118.91-119.01 yen in New York and 1.1234-1235 dollars and 118.85-89 yen in late Friday afternoon trade in Tokyo.
"Excessive market movements are undesirable for the real economy," Takeuchi said, after an emergency meeting was convened between senior Japanese government and Bank of Japan (BOJ) officials.
He added that the government was poised to take action to alleviate any negative effects on currency, stock markets and the economy stemming from volatility caused by virus-related concerns.
Finance Minister Taro Aso earlier in the day opted not to comment on whether the ministry would intervene in the foreign exchange market to halt the yen's rise, although he did not rule out the possibility of a forex foray.
"Some nervous moves can be seen in the latest foreign exchange and stock markets, so we have to keep monitoring closely for a while," Aso told a press briefing after Tokyo stocks tanked more than 1,200 points, or 6 percent in Monday morning trade.
Bank of Japan Governor Haruhiko Kuroda told a parliament session meanwhile that the central bank stood ready to take action against market volatility and uncertainty "without hesitation."
"We will make every effort to provide ample liquidity and ensure the stability in financial markets through bond-purchase operations and increased buying of exchange traded funds," the BOJ chief said.
