Business / Economy

Government coordinates response to potential market volatility during Japan's 10-day holiday period


A meeting involving representatives of the Finance Ministry, the Financial Services Agency and the Bank of Japan was held Friday to discuss how to a respond if the upcoming 10-day holiday period linked to the Imperial succession leads to wild fluctuations in financial markets.

The foreign exchange monitoring system will maintain operations, while departments responsible for overseeing banks and the Tokyo Stock Exchange will take steps to be prepared for swift communications.

Many major overseas economic indicators, such as U.S. jobs data for April, are slated to be announced while Japan is in the holiday period from April 27.

“We confirmed our responses in the event of financial market volatility,” Vice Finance Minister for International Affairs Masatsugu Asakawa told reporters after the meeting Friday.

The FSA asked banks to put 30 percent more cash per day in their ATMs than during the normal Golden Week holiday period, which runs from late April to early May.

Regulators will beef up surveillance against any questionable stock market activities during the period immediately before the holidays, when trading volume is expected to be low. The TSE will increase the number of personnel for monitoring market activities.

Asakawa also said Finance Minister Taro Aso is planning to visit the Unites States next week to meet with Treasury Secretary Steven Mnuchin.