Japan to watch markets for Brexit impact

TOKYO: Japan will continue to closely monitor how financial markets react to the possibility that Britain could leave the European Union, a government spokesman said on Wednesday.

Deputy Chief Cabinet Secretary Hiroshige Seko made the comment in response to a question about whether Japan was willing to cooperate with Britain and the EU to stabilise financial markets.

Seko declined to comment on the yen when asked whether Japan would sell its own currency if a British vote in favour of leaving the EU triggered market volatility, but policymakers in major economies could struggle to calm markets if Britain´s "leave" camp wins a referendum next week.

"I recognise that the Nikkei stock index has fallen and Japanese bond yields have hit record lows, but I don´t want to comment on specific levels," Seko said.  "We will continue to closely monitor the situation.