The nuclear test North Korea claimed it conducted Monday will negatively effect Japan's economy, Bank of Japan Gov. Toshihiko Fukui said Friday.
"North Korea's situation and other geopolitical risks around the world will negatively affect the thinking of financial and international commodity market players, and thus the economy and price trends," Fukui told a news conference.
In the short term, however, the incident will have a limited impact on the Japanese and global economies since trade with North Korea is small, Fukui said, vowing the BOJ will closely monitor the situation.