Japan welcomes US bailout plan for troubled mortgage firms
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The Japanese government on Monday welcomed the US bailout plan for troubled mortgage finance giants Fannie Mae and Freddie Mac, saying the plan is expected to help stabilize financial markets.
Chief Cabinet Secretary Nobutaka Machimura told a news conference, "We welcome the plan as an appropriate measure as it is believed it will contribute to stabilizing the financial markets and help to facilitate the US housing market."
He said the US rescue package is in line with Japan's proposal to inject public funds into the troubled finance firms.
The top government spokesman also said that he hopes the fresh step by the US government will have a favorable effect on the global economy, saying a sharp rise in Tokyo stock prices and the US dollar's advance against the yen and other currencies underpinned such a view.
Tokyo stocks soared Monday, with the benchmark 225-issue Nikkei index rising 3.38 per cent, or 412.23 points, from Friday to finish at 12,624.46 points.
The US dollar advanced to the upper 108 yen level Monday in Tokyo, compared with the 105 yen range it temporarily logged the previous week.
Finance Minister Bunmei Ibuki also hailed the US plan.
"Anxieties clouding the US economy will be removed and it will have a good impact on the global economy," Ibuki said in reference to the bailout plan.
Japanese financial institutions own a large amount of bonds issued by the two US mortgage firms and repercussions for their business performance have been feared.
The US government's decision will also likely help to improve the business performance of Japanese financial institutions, the finance minister said.
Chief Cabinet Secretary Nobutaka Machimura told a news conference, "We welcome the plan as an appropriate measure as it is believed it will contribute to stabilizing the financial markets and help to facilitate the US housing market."
He said the US rescue package is in line with Japan's proposal to inject public funds into the troubled finance firms.
The top government spokesman also said that he hopes the fresh step by the US government will have a favorable effect on the global economy, saying a sharp rise in Tokyo stock prices and the US dollar's advance against the yen and other currencies underpinned such a view.
Tokyo stocks soared Monday, with the benchmark 225-issue Nikkei index rising 3.38 per cent, or 412.23 points, from Friday to finish at 12,624.46 points.
The US dollar advanced to the upper 108 yen level Monday in Tokyo, compared with the 105 yen range it temporarily logged the previous week.
Finance Minister Bunmei Ibuki also hailed the US plan.
"Anxieties clouding the US economy will be removed and it will have a good impact on the global economy," Ibuki said in reference to the bailout plan.
Japanese financial institutions own a large amount of bonds issued by the two US mortgage firms and repercussions for their business performance have been feared.
The US government's decision will also likely help to improve the business performance of Japanese financial institutions, the finance minister said.
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