DHAKA: Japanese shares have managed to recover some ground after their historic plunge last Friday following the UK’s vote to leave the European Union.

Traders are taking some confidence from a pledge by the Japanese government to stabilize the financial markets, reports the BBC.

The Nikkei 225 was up 2% to 15,256 after losing almost 8% on Friday.

The yen, though, remains strong at 101 to the dollar. This hurts Japan’s exporting firms by making their goods more expensive on world markets.

The yen has gained ground because it is considered a safe haven currency, a status which has been bolstered by the continued decline of the pound.

It has continued its slide in early trading in Asia on Monday, adding to Friday’s record one-day decline.

In a response to the currency woes and the risk it poses to Japan’s crucial export sector, the government held an emergency meeting with the central bank.

Prime Minister Shinzo Abe told finance minister Taro Aso to watch currency movements ‘ever more closely’ and take steps if necessary.

‘Risks and uncertainty remain in financial markets,’ Abe said. ‘We need to continue to work toward market stability.’

BDST: 1223 HRS, JUN 27, 2016
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