TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the government may develop new measures aimed at boosting equities if weakness in the stockmarket persists into the autumn. He told reporters that Prime Minister Junichiro Koizumi has ordered him to "address the stockmarket problem".
Shiokawa added that he urged Japan Securities Dealers Association chief Eiichiro Okumoto in a meeting this afternoon to introduce new measures to help revive the ailing market.
"Securities firms should be more aggressive, as well as trying to expand new investment funds and increase portfolios, while investment trust managers should put more focus on revitalising the stockmarket," he said.
"Mr Okumoto told me that securities companies will gather to discuss my request," he said.
"I am now considering whether the government will have to work out comprehensive measures by hearing a range of opinions of other ministers and experts," Shiokawa said.
"Whether we will work out a new economic plan depends on the economic situation in the autumn. If the economy worsens, we will have to take action," he said.
However, he said this does not mean the government will compile an additional budget.
"There is no relation in this to compiling an extraordinary budget," Shiokawa said, adding that he will also try to mobilise the banks in reviving the economy.
"I plan to ask banks to increase loans to companies to boost exports, because the balance of exports to imports is skewed, and to boost capital spending as part of economic stimulus measures," he said.
The move would not take the form of administrative guidance but a simple request, he said.
However, Shiokawa said the government will take a cautious approach in putting into action the structural reforms already planned for fear that they may upset the fragile economy.
"The speed that we implement reforms is a problem for the government. Although we are now ready to make an agenda for restructuring, we will cautiously implement the reforms."