AFP-Asia says strong yen not good f

[tinkyi@xxxxxxxxxxxxx]

Reply-To: "TIN KYI" <tinkyi@xxxxxxxxxxxxx>
Subject: AFP-Asia says strong yen not good for region

Asia says strong yen not good for region
WASHINGTON, Sept 27 (AFP) - Japan and Southeast Asia said on Monday they
shared concern over the strong yen, fearing it could hamper Japanese
economic recovery.
"Basically we shared the same opinion as the G7 -- the yen is too strong,"
Thai Finance Minister Tarrin Nimmanahaeminda said just after a meeting here
of finance ministers from Southeast Asia and their Japanese counterpart,
Kiichi Miyazawa.

The higher yen "may affect Japan's recovery and that's not favourable for
Asian nations," he told reporters.

Finance ministers and central bank governors from the Group of Seven (G7)
economic powers in a statement Saturday expressed "concern" over the rising
yen.

"Other countries said they share the concern mentioned in the G7
communique," a senior Japanese finance ministry official said in a briefing
following the 50-minute Japan-ASEAN meeting.

The 10-member Association of Southeast Asian Nations (ASEAN) was represented
by finance officials from nine nations, excluding Laos. The other ASEAN
members are Brunei, Cambodia, Indonesia, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Vietnam.

ASEAN nations showed "strong interest in how the Japanese economy is
faring," said the Japanese official who accompanied Miyazawa on the meeting.

"The Japanese side explained we will continue stimulus measures until
domestic demand-led growth becomes certain," the official said.

ASEAN did not request Japan increase the amount of the 30 billion dollar
rescue package unveiled by Miyazawa last year for crisis-hit Asian
neighbours, he said.

The aid was offered to Indonesia, Malaysia, the Philippines, South Korea and
Thailand. Japan has also said it is negotiating with Vietnam over the
extension of yen loans.

At the day's meeting, Myanmar "expressed its interested" in getting aid from
Japan, the official said.

Japan told Myanmar "we will consider it by examining the content" of
possible aid projects, the official said, noting the Japanese side was
"speaking in general" and having no concrete plans in mind.

Japan had come to the G7 meeting to win support for joint action on the yen
but found little support for concerted intervention from its major trading
partners.

Japanese Prime Minister Keizo Obuchi said earlier this month that the yen's
recent rally was good news for other Asian countries as long as it mirrored
Japan's economic recovery.

"The strong Japanese yen means Asian countries' Japanese-bound exports will
grow and that there will be a positive impact on the Asian economy," Obuchi
said.

That remark appeared to give yen-buyers the green light, helping the already
bullish currency hit a three-year high against the dollar the following day.

Miyazawa held a separate meeting with South Korea's Economy and Finance
Minister Kang Bong-Kyun at a Washington hotel following the talks with the
ASEAN nations.

Miyazawa told Kang he was "strongly interested in stronger-than-expected
recovery" from the financial crisis, the Japanese official said.

As he left hotel for airport to return home, Miyazawa showed modest
satisfaction on the outcome of his US trip and the G7 meeting.

"Well, this is fine," he simply told reporters.