Japanese finance minister Taro Aso said that he was closely watching market volatility when Asian shares dropped due to rising fears on the economic impact of the coronavirus spread, which is said to be larger than expected.
Aso declined to comment on the yen’s continual decline against the dollar.
Economy minister Yasutoshi Nishimura said that the government was ready to implement measures to support Japan’s economy if it heavily affects industries like tourism.
Nishimura added that market concerns and virus risks were intensifying, resulting to a gloomier economic outlook.
Finance chiefs from the top twenty economies made a vow at their meeting in Riyadh to watch the coronavirus spread’s impact on global growth and act if necessary.
However, it was ineffective as Asian shares declined on Tuesday. Markets turned anxious of the virus mutating fast, which in time could cause a disruption in global supply chains and global growth.
Japanese share .N225 and the yen were heavily affected by the virus. The disruption in supply chain and tourism emphasized market expectations that the country could fall to a recession.
The U.S. dollar stood at 110.90 against the yen on Tuesday.