Japanese prime minister urges caution in judging market's sharp moves By Reuters

By Makiko Yamazaki and Satoshi Sugiyama

TOKYO (Reuters) -Japanese Prime Minister Fumio Kishida said on Tuesday it was important to make calm judgements about the volatile market situation, with stock prices experiencing whiplash.

The stock index soared more than 8% early on Tuesday in a relief rally after plummeting 12.4% in its worst sell-off since the 1987 Black Monday crash.

Speaking to reporters in Hiroshima, Kishida said the government will continue to promote economic and fiscal management while working closely with the Bank of Japan.

He also shared an optimistic outlook for the world’s fourth largest economy, citing factors like the first rise in inflation-adjusted real wages in more than two years in June.

“We recognise the Japanese economy continues to make a strong transition to a new stage,” Kishida said.

Japanese Finance Minister Shunichi Suzuki gave similar remarks earlier on Tuesday, saying the government would monitor and analyse financial market moves and work closely with relevant authorities.

“It’s important to realise resilient economic growth while responding to changes in front of us,” Suzuki said.