Japan trading houses call for a stable yen to protect investments

Major Japanese trading houses warned that recent yen volatility is raising investment risks and urged authorities to help stabilize the currency; separately, China announced immediate export controls on dual-use items to Japan, and Japanese officials are still assessing the impact.

Some of Japan's largest trading houses have warned that recent swings in the yen are increasing investment risk and called on authorities to help steady the currency. Company leaders said stability matters more than whether the yen is relatively strong or weak, because wide swings make investment planning difficult. Finance Minister Satsuki Katayama has signaled that authorities are prepared to act if excessive currency moves continue. At the same time, China announced export controls on dual-use items to Japan following comments by Japan's prime minister, and Japanese officials are reviewing the measures. Key facts: - Trading houses said recent yen volatility has raised investment risk and can cause companies to delay investment planning. - Sumitomo Corp. and Marubeni Corp. executives emphasized that stability, not just the yen's level, is important for business planning; swings of about 10 yen against the dollar were cited as particularly disruptive. - Finance Minister Satsuki Katayama indicated authorities are ready to take measures if excessive movements persist. - China's Ministry of Commerce announced immediate controls on exports of dual-use items to Japan; Japanese trade officials were reported to be checking the situation and the impact was not yet clear. Summary: Trading houses report that currency swings are complicating investment decisions and have urged government action to improve stability. Undetermined at this time.