Japan PM urges Britain, Germany to reassure markets after Brexit vote

The stronger yen will hamper efforts by Abe (above) to revive Japan’s economy.
The stronger yen will hamper efforts by Abe (above) to revive Japan’s economy.PHOTO: REUTERS

TOKYO (REUTERS) - Japanese Prime Minister Shinzo Abe urged the British and German leaders on Thursday to work together to restore confidence in global financial markets after Britain's shock decision in a referendum last week to leave the European Union.

The vote delivered an unprecedented blow to Europe's post-World War Two political and economic order, prompted a sharp selloff of global stocks and the British pound and sent the Japanese yen, viewed as a safe haven, soaring.

The stronger yen will hamper Abe's efforts to revive Japan's economy.

In a statement, the Japanese government said Abe had held separate telephone conversations with British Prime Minister David Cameron and German Chancellor Angela Merkel, Europe's most powerful leader.

"Prime Minister Abe asked that Britain and the EU work together and send a clear message that would remove market concerns and strengthen predictability in a speedy manner," the statement said.

Abe agreed with both Cameron and Merkel that the Group of Seven (G-7) leading industralised nations should cooperate closely to achieve stability in global financial markets, it added.

The G-7 groups Japan, Germany, Britain, the United States, France, Canada and Italy.

Cameron plans to step down as prime minister in the autumn following his failure to convince Britons to vote to remain in the EU.