Japan called on Germany on Friday to step up and help plug the widening hole in Europe’s finances, saying Berlin should play a leading role in creating a debt "firewall".
Finance Minister Jun Azumi said the continent’s largest economy needed to do more if Europe was to get out of the downward spiral of debt that is threatening to tip the global economy into recession.
"It is important for Germany to (play) a central role in creating a firm funding scheme that we can refer to as a firewall," Azumi told a news conference, Dow Jones newswires reported.
Read the rest of the story: Japan calls on German ‘central role’ in euro ‘firewall’.
Japanese stock futures fell after Fitch Ratings said a worsening European debt crisis is a “serious risk” to U.S. banks, stoking concern about the global financial system. Australian stocks were little changed.
American depositary receipts of Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender by market value, dropped 2.5 percent from the closing share price in Tokyo. Those of Komatsu Ltd. (6301), the country’s largest maker of construction machinery, slid 1.5 percent. BHP Billiton Ltd. (BHP), an Australian oil producer, rose 0.2 percent after oil climbed above $100 a barrel.
Read the rest of the story: Japan Stock Futures Fall After Fitch Says Europe Threatens U.S. Banks.
Japan’s government bought 10 percent of bonds sold by Europe’s rescue fund yesterday, a Finance Ministry official said, in a show of support for the region’s bailout efforts.
It purchased 300 million euros ($413 million) worth of debt in the European Financial Stability Facility’s 3 billion-euro bond sale, said the person, who spoke to reporters in Tokyo today on condition of anonymity.
The EFSF postponed the bond sale on Nov. 2 amid market turmoil prompted by Greek Prime Minister George Papandreou’s call for a referendum on the rescue pact for his country.
Read the rest of the story: Japan Says It Bought 10% of Europe Rescue Bonds Yesterday.