Prime Minister Ryutaro Hashimoto said Monday he was "very concerned" that the Tokyo Stock Exchange's key barometer has dropped below 15,000 yen.
"I wonder (if market players) may be unable to have enough confidence," Hashimoto told reporters. Meanwhile Osamu Watanabe, vice minister for international trade and industry, downplayed the continuing economic turbulence.
He said stability will return to the nation's stock market once psychological uncertainty is wiped out. Speaking at a regular news conference, he said substantial falls in stock prices since Friday reflect psychological uncertainty and a speculative sell-off following Thursday's failure of Toshoku Ltd., a foodstuff company.
Now that the government is ready to take a series of measures, including a 2 trillion yen cut in income and residential taxes, he said, the nation's economy should be able to stabilize in due time. "I don't believe the state of the real economy is in such turmoil," he said. "I would like to call on both industries and financial institutions to act with composure ... getting a firm grasp on reality, and not yielding to speculation."
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