Japanese Prime Minister Sanae Takaichi said on Friday that the government will focus on measures to strengthen the economy by enhancing areas with competitive edge. She noted that market turbulence is impacting not only Japan but also countries around the world, adding that the government will closely monitor developments and assess their potential impact.

Key quotes

Aware AI, chip shares dropping sharply, unsure if temporary or lasting. 

Focus on measures to reinforce economy by enhancing areas with competitive edge. 

Market turbulence impacting not only Japan but nations worldwide, so monitoring progress closely. 

Aim to use proceeds from BoJ’s faster ETF sales to fund spending on key areas for Japan’s economic security. 

Proceeds from BoJ ETF sales reflect Japan’s economic growth, should be used to promote further growth and a virtuous economic cycle. 

Proceeds from BoJ’s accelerated ETF sales can fund bonds to help government secure funds for public spending targeting public investment. 

Market reaction

At the time of writing, the USD/JPY pair is down 0.07% on the day at 157.90.