Tuesday, 9th November 2010
In General Japan News,
Japan firms encouraged to invest
Japan's government is calling for domestic firms to invest in overseas operations and benefit from the current strength of the yen.
"We must work to prevent (a sustained rise in the yen), but in the meantime, there are advantages of yen rises," explained Yoshihiko Noda, Japan's finance minister.
He added: "Moves such as purchasing foreign assets as well as foreign companies should be actively pursued."
Japanese authorities have taken a number of steps in recent months to weaken the yen, including the selling of 2.125 trillion yen (£16.2 billion) but the currency remains close to a 15-year high against the dollar.
So far in 2010, there has been a rise in overseas mergers and acquisitions by Japanese companies with purchases totalling $28.1 billion (£17.4 billion) this year so far, compared with $27.6 billion (£17 billion) in the 12 months of 2009, reports the Wall Street Journal.
The strong yen is also impacting on Japan's auto industry, with Toyota announcing it may move production overseas if profit continues to decline.
Written by Susan Ballion.