Japan «very concerned» after yen's surge over «Brexit

Aso refrained from commenting on possible market intervention to halt the yen's rise after the dollar bounced back above the 100 yen level. The U.S. dollar had dropped below the 100 yen line for the first time since November 2013.

"We are very concerned over the risks to the global economy, financial and exchange markets," Aso told reporters, adding the government will monitor the situation "more than ever" and steadily take steps when needed so volatile movements do not continue.

The yen soared against the dollar and other currencies after local media reported poll results showed the Leave vote leading in Britain's referendum on EU membership.

Aso said such movements are "very sensitive" and stability in the global economy and markets is "extremely important."

The government will hold a meeting later Friday to discuss measures to contain market shocks, to be attended by Prime Minister Shinzo Abe, Aso and Foreign Minister Fumio Kishida, government sources said.

The meeting, which is also expected to analyze the impact on the world economy, is apparently aimed at preparing for possible cooperative action by the Group of Seven countries, with Japan holding the group's presidency this year.

The Bank of Japan said it will "stand ready to provide sufficient liquidity, including utilizing swap arrangements" with the U.S. and European central banks to "ensure the stability of financial markets."

The BOJ "will continue to carefully monitor how the result affects global financial markets" in close cooperation with relevant domestic and foreign authorities, Governor Haruhiko Kuroda said in a statement.

Britain's departure from the European Union could also affect ongoing negotiations between Japan and the bloc on a free trade agreement.

"It may have become difficult" to reach an accord within the year, Japanese Economy, Trade and Industry Minister Motoo Hayashi said.

Vice Foreign Minister Shinsuke Sugiyama told reporters that it is "extremely disappointing" if the "Brexit" is true and added the government will deal with the matter "with a sense of speed and urgency."

Another Foreign Ministry official said, "There is nothing positive" about Britain's exit from the union for Japan, the United States or European countries, warning that the world could be destabilized if the referendum result prompts moves such as Scotland leaning towards independence from Britain.

The government is set to collect information from its embassies in Europe and explore support measures for Japanese firms operating in the region, ministry officials said. About 1,000 Japanese companies currently do business in Britain.

Source: Kyodo