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Watanabe: Subprime Impact On Japan Financial Systems Likely Small

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TOKYO (Dow Jones)--Japan's banking minister, Yoshimi Watanabe, said Wednesday the impact of the U.S. subprime mortgage problems on the Japanese economy will likely be limited.

 

"While global financial markets fell into unstable conditions, the troubles in the subprime market are unlikely to have a huge impact on Japan's real economy or financial system," Watanabe said at a press conference.

 

However, he said there still remains a risk of a yen-carry trade unwinding.

 

He added that Tokyo share prices may also fall more as players sell stocks to cover subprime losses.

 

 

 

 

Copyright ? 2007 Dow Jones & Company, Inc.

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