Hatoyama orders budget measures to tackle currency, stock market issues+

TOKYO, Nov. 29 Kyodo -
Prime Minister Yukio Hatoyama ordered Cabinet ministers on Sunday to include
measures aimed at coping with the yen's rapid appreciation and the decline in
the Japanese stock market in a supplementary budget for fiscal 2009.

Hatoyama issued the order at a meeting with Finance Minister Hirohisa Fujii and
other key figures of his government, where they shared a view that fresh, swift
measures are necessary to stave off adverse impact on the Japanese economy of
the currency and stock market situations.
Those who attended the meeting were concerned that the yen's recent rise could
deal a severe blow to exporters and the country's economy on the whole, and
agreed to come up with countermeasures in the second fiscal 2009 supplementary
budget currently being formulated.
The new extra budget has been expected to be worth around 2.7 trillion yen, but
its size is likely to increase if it features such market measures.
Deputy Prime Minister Naoto Kan, Chief Cabinet Secretary Hirofumi Hirano and
administrative minister Yoshito Sengoku also attended the meeting, which was
called by Hatoyama.
The move comes as the yen rose to levels against the dollar unseen in 14 years
with the U.S. currency having briefly fallen to the 84-yen range, triggered by
concerns over financial trouble in the Middle Eastern emirate of Dubai. The
currency market turbulence led share prices in Tokyo to tumble with the key
Nikkei stock index shedding over 3 percent on Friday.
According to officials familiar with the discussions at the meeting, Hatoyama
demanded that given the current market situations, fresh measures be worked out
in addition to employment, environment and economic measures being considered
as part of the supplementary budget.
Hatoyama asked the other participants to be alert for Monday's market moves,
they said. Hatoyama is scheduled to meet with Bank of Japan Governor Masaaki
Shirakawa by next weekend.
==Kyodo
2009-11-29 21:40:30