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Only United States pretends there is no market manipulation anymore

Section: Daily Dispatches

US and Japan to protect markets

BBC News
Wednesday, March 19, 2003

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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,
before rebounding.

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.

Economic troubles

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.