Brexit Boosts Japanese Yen But Forthcoming EU Collapse Worries Tokyo More
- Brexit Boosts Japanese Yen, But Forthcoming EU Collapse Worries Tokyo More
by http://sputniknews.com/
Brexit’s effect on the Japanese economy will be temporary, but its long-term effect on the EU will have a great impact on Japanese trade, Professor Andrey Fesyun from Russia’s Higher School of Economics told Sputnik.
–
The United Kingdom’s exit from the European Union will have a limited effect on Japan, however the domino effect and eventual break-up of the EU will have a great impact, Professor Andrey Fesyun from the Russian Higher School of Economics’ School of Asian Studies told Sputnik.
–
As news broke on Friday that the UK had voted to leave the EU, the Japanese yen briefly surged to 99 to the dollar, its highest level since Abenomics began in November 2013. The Nikkei 225 index plunged by 1,286 points, or 7.92 percent, the biggest dive in 16 years.
–
As the yen surged, Japanese Finance Minister Taro Aso told reporters in Tokyo that the Japanese government is ready to intervene to stabilize financial markets.
–
“We are very concerned about the risks this will have on the world economy, finance, currency markets and other areas,” Aso said. “In the foreign exchange market, we are seeing some very nervous moves, and so that these kinds of moves don’t continue, we are watching it with a sense of concern that is higher than before, and we will respond properly if needed,” Japan Times reported.
–
Fesyun told Sputnik that Japan need not be more worried than other countries about the consequences of Brexit, but that a greater danger lies on the horizon.
–
“It won’t affect Japan more than the other countries of the world. Yes, today it has led to turmoil in the stock market and a rise in the yen against the dollar. But this, you could say, is a little ‘shake,’ which will stop. It’s not a crisis. For Japan, crises in the US or Asia, particularly China, are dangerous, and there nothing terrible is happening yet.”
–
read more.
end