Japan prepares battle lines to counter effects of Brexit

Tokyo

MONDAY is set to be a big day of battle for Japanese authorities as they struggle to contain the fallout on the yen and the Tokyo stock market of last week's "Brexit" shock - which dealt a body blow to international financial markets and may eventually even hit the global economy hard.

Beyond tackling the immediate financial market impact, Japan Inc needs to grapple with the fate of some 1,400 of its business and financial firms which have established a European base in Britain on the basis of it being part of the European Union - but which now find themselves facing potential tariff and other barriers unless they relocate to the continent.

As was the case last Friday, when Tokyo was the first major market in world time zones to open after the Brexit shock, Monday will again see Tokyo on the front lines of battle against a potential tide of yen-buying and Japanese stock-selling orders as investors continue …