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Only United States pretends there is no market manipulation anymore
US and Japan to protect markets
Wednesday, March 19, 2003
Just days ahead of a war, the United States and Japan are
prepared to co-operate to support the financial markets if
there is a crisis.
A deal was struck last week in the United States between
a former Japanese finance minister and the head of the
U.S. central bank, the Federal Reserve's Alan Greenspan.
quot;There was an agreement between Japan and the United
States to take action co-operatively in foreign exchange,
stocks, and other markets if the markets face a crisis,quot;
Chief Cabinet Secretary Yasuo Fukuda said.
The move came as Japan's key Nikkei 225 index dropped
to another 20-year low, falling about 1.5% to hit 7,824.82,
Finance and economics minister Heizo Takenaka said
the Bank of Japan and stock exchanges would be watching
the markets closely during the current Iraq crisis.
quot;We will follow the prime minister's instructions,
co-operate with the Bank of Japan and exchanges, and
respond appropriately,quot; he said.
The looming war comes as Japan's economy continues to
struggle with weak domestic demand, record unemployment
and a third year of deflation.
Stronger exports also look threatened as the weakening of
the dollar has pushed up the yen.
Japan's Financial Services Agency has already announced
a number of measures to support the markets including
easing rules on companies to buy their own shares.