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BOJ to carefully watch financial markets amid Evergrande woes

A security guard walks by a map showing Evergrande development projects in China at an Evergrande new housing development in Beijing, on Sept. 22, 2021. (AP Photo/Andy Wong)

TOKYO (Kyodo) -- The Bank of Japan will closely monitor developments in financial markets recently rattled by concerns about a potential default by major Chinese property developer Evergrande Group, Governor Haruhiko Kuroda said Wednesday.

    "The Bank of Japan will continue to watch closely any change in market views on the debt issue and its impact on global financial markets," Kuroda told a press conference after a two-day policy-setting meeting.

    Japanese shares, which had risen sharply on expectations for fresh stimulus under a to-be-launched government following the resignation of Prime Minister Yoshihide Suga later this month, fell on Wednesday, with the 225-issue Nikkei stock index ending at its lowest level since Sept. 3.

    Investors are on alert against the possibility of ripple effects that they fear could lead to another financial crisis, but Kuroda brushed aside concerns about any spillover effects at this point.

    "It's appropriate to see this as an issue related to the company concerned and also China's real estate industry," Kuroda said, noting that the development came after years of the sector's rapid expansion.

    "We will continue to follow developments in the Chinese economy," Kuroda said.

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