Japan assured by Britain due consideration to be given to companies before negotiations on EU exit

Japan and Britain on Wednesday discussed issues pertinent to Britain's recent vote to leave the European Union including concerns voiced by Japanese companies that their investments and operations in Britain and the EU may be adversely affected.

Japan's Foreign Minister Fumio Kishida told a press briefing that he had spoken with British Foreign Secretary Philip Hammond on the telephone earlier in the day and received assurances that"due consideration would be given to Japanese companies so that they could continue to operate as they have done up until now."

Kishida said that Hammond had also said that before Britain goes into negotiations with the EU regarding its exit package, that the views of Japanese companies will be taken onboard regarding how they will be affected once Britain leaves the single European bloc.

In addition, Kishida said that economics aside, bilateral ties in terms of security and defense would also be strengthened between Japan and Britain.

He also said that he had held talks with Federica Mogherini, high representative of the European Union for foreign affairs and security policy, and told Mogherini that Japan expects smooth negotiations as Britain gears up to exit the EU.

The pair, according to the foreign ministry here, affirmed that an agreement on Japan-EU free trade negotiations would be reached at the earliest opportunity, with remarks the same day from Japanese Prime Minister Shinzo Abe also helping to steady markets here and settle some corporate nerves in the short term.

Abe said that his government stood poised to "mobilize all policy measures to ensure Japan's real economy, especially business activity of small and midsize firms, is not affected."

The remarks came after the Brexit vote saw the pound drop to more than a 30 year low, and the yen spike versus the U.S. dollar as the stock market tumbled to closing lows not seen since either the Fukushima nuclear disaster in 2011 or the Lehman Brothers collapse in 2008.

Abe has instructed Finance Minister Taro Aso and Bank of Japan Governor Haruhiko Kuroda to remain ultra-vigilant, with both saying they stood ready to act decisively as deemed necessary to ensure both currency and economic stability.

They have both intimated in separate meetings this week that the finance ministry, for its part, would intervene in currency markets if the yen were to skyrocket again, and the central bank unleash more easing measures, such as further plunging its interest rates into negative territory, or upping the size of its already almighty asset purchasing program, if it was decided that new stimulus and easing measures were required if Brexit-related volatility reemerges.

"Financial markets have been stable in the short term but the government will closely monitor the situation in the medium to long term to assess the impact of the 'Brexit' vote," Aso told a press briefing Wednesday.

Kuroda said that there is no problem with the procurement of foreign currencies by Japanese banks.

"We have a system to supply funds whenever needed," Kuroda said, with reference to the BOJ's dollar fund supply operation which was conducted on Tuesday.

On Tuesday, the BOJ auctioned off 1.48 billion U.S. dollars worth of funds to financial institutions wanting to snap up the U.S. currency, with the dollar-funds supplying auction marking the biggest since December 2014, with all bids being placed being accepted by the central bank. Endit