What Global Policy Makers Are Saying About the Stock Slide

  • Bank of Japan’s Kuroda: stock pain felt, economy still firm
  • Currency markets worth monitoring amid jolts: Bank of Korea

Kashkari Does Not See 'Urgency to Slam on the Brakes'

A second day of sharp equities sell-offs in Asian markets, spurred on by a plunge in U.S. stocks on Monday, has put policy makers on watch for further pain.

Here’s what officials around the world have been saying about the markets:

United States

  • The White House released a statement in response to queries about the markets, saying President Donald Trump is focused “on our long-term economic fundamentals, which remain exceptionally strong”
  • Vice President Mike Pence told reporters while traveling that the sell-off was “very likely simply the ebb and flow of our stock market”

Japan

  • Bank of Japan Governor Haruhiko Kuroda told lawmakers in parliament on Tuesday that Japanese stocks were affected by the U.S. decline
  • Economic fundamentals are still firm in Japan and abroad, and stocks move on various factors in the short term, Kuroda said, in response to questioning
  • Prime Minister Shinzo Abe, at the same session of parliament, said he trusts Kuroda to handle monetary policy; Kuroda said the BOJ will continue its monetary easing as inflation is only halfway to its 2 percent target

South Korea

  • Markets in South Korea have been rattled by the drop in U.S. stocks, a Bank of Korea official, who asked not to be identified due to internal BOK policy, said on Tuesday
  • Authorities are closely monitoring the foreign-exchange market, which should be strong enough to absorb the negative effects of the market jolt, the official said

India

  • The market decline in India is related to the global sell-off, Finance Secretary Hasmukh Adhia said from New Delhi on Tuesday
  • Global markets are interrelated and India is not an island, said Adhia

Indonesia

  • Indonesian stocks and the rupiah are taking a hit from the global market rout, while economic fundamentals remain healthy, Suahasil Nazara, head of the fiscal policy agency at the Finance Ministry, said Tuesday in a text message
  • “We expect investors will be more in favor of Indonesia, especially when global markets are in an adjustment period like now,” Nazara said
  • The government will monitor market developments and global bond issuance while maintaining fiscal, monetary and structural policy reforms, Nazara said

Australia

  • The Reserve Bank of Australia’s statement made no mention of markets on Tuesday after the central bank left interest rates unchanged for a record 16th meeting, amid a resurgent currency and subdued inflation
  • RBA Governor Philip Lowe might have something to say on the market sell-off on Thursday, when he’s scheduled to speak ahead of the release of the RBA’s quarterly growth and inflation forecasts on Friday

Singapore

  • Deputy Prime Minister Tharman Shanmugaratnam, the coordinating minister for economic and social policies, tweeted a link Tuesday to a Washington Post opinion piece that argues the correction could prove a healthy “awakening” and a sign of post-crisis healing
  • “Worth reading this @scmallaby piece,” Tharman said in the tweet

— With assistance by Chris Anstey, Anirban Nag, and Tassia Sipahutar

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