Ad Hoc Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Monday, August 5, 2024, 4:35 pm to 4:41 pm)

Q.

The Nikkei Stock Average recorded the largest-ever decline. Additionally, the rise in the yen's value is accelerating. Could you explain how you think these situations and what measures the government will take from now? Confusion and unrest are spreading among people who newly started investments, including those using the new NISA program, under the government's policy to accelerate the shift "from savings to investment." I would like to also ask for your view on this.

A.

Of course, I am very much concerned about the stock price decline over this weekend, and have read various articles and media reports. There is a wide range of evaluations and views, such as those on factors that are considered to cause the recent stock price decline. Generally speaking, stock prices are determined by the market based on investors' evaluations of domestic and international economic conditions, trends in corporate activities, or the like. Therefore, it is hardly possible to generally specify the backgrounds or other factors regarding market fluctuations.
Accordingly, I will refrain from making any comments specifically, but I think it important for the government to make a cool-headed decision. We would like to continue paying attention to trends in domestic and international economies and financial markets with a sense of tension.
There are also various opinions and evaluations regarding the impact of the recent sharp stock price decline on the Japanese economy. However, the Japanese economy is showing positive trends, such as high-level wage hikes achieved in the spring labor offensive for the first time in 33 years and the record-high capital investments over 100 trillion yen. I think that the Japanese economy will recover moderately with improvements in the employment and income environments.
The FSA's departments in charge of monitoring are collecting and analyzing information on financial market trends in and outside Japan and share such information among officials, including executive officers, on a daily basis.
Regarding the recent sharp stock price decline as well, meetings with the participation of the Commissioner and other officers are held flexibly to ascertain and analyze market trends or other matters and we are endeavoring to develop systems for internal and external collaboration and liaison.
At any rate, the government will closely watch trends in domestic and international economies and financial markets, in collaboration with the Bank of Japan, with a sense of tension and will continue its utmost efforts to achieve economic and fiscal soundness.
You pointed out that unrest is spreading among people who newly started investments under the new NISA program, and there is news coverage pointing out the same. Even amid market fluctuations, such as price falls, investors, including those using the new NISA program, are expected to act calmly in consideration of the importance of long-term, installment, and diverse investment.
While closely watching market trends continuously with a sense of tension, the FSA will disseminate the importance of long-term, installment, and diverse investment, as I mentioned earlier, to raise people's awareness and make further efforts for enhancing people's financial literacy cooperatively with related parties.