Japan may extend purchases of bonds sold by a European financial aid fund in coming months to support the region's recovery from the sovereign debt crisis, according to two government officials.
Finance Minister Yoshihiko Noda said Tuesday Japan intends to buy more than a fifth of the bonds to be sold later in January to fund the bailout of Ireland. The government is considering more purchases after that to help boost confidence in the euro area, said the two officials, who spoke on condition of anonymity because the government's plans aren't public.
Japan may be trying to highlight its relevance in international economic affairs after China was ahead in seeking to shore up confidence in the euro. China, whose economy surpassed the size of Japan's in the second and third quarters last year, has received increasing interest from European leaders seeking greater access for their region's companies to the world's fastest-growing major economy.