Yen-driven slump in Tokyo stocks may force Bank of Japan into early action

Tokyo

AS the Tokyo stockmarket slumped to a three-and-a-half month low on Tuesday - dropping by a further 2.7 per cent and marking its fifth consecutive daily fall - Japanese Minister of Finance Taro Aso called on investors to "remain calm" despite dramatic fluctuations in stock prices and currencies.

The yen eased somewhat its recent sharp surge against the dollar but news that Japan's current account surplus climbed to a 17-month high in November pointed to further - and unwelcome - upward pressure on what has become a "haven currency", analysts said.