Japanese Finance Minister: Ready to take foreign exchange intervention action; joint statement with the U.S. remains in effect.

Japanese Finance Minister Satsuki Katayama said Japanese authorities are ready to respond if there is disorderly movement in the currency market, and that they will act in line with an existing agreement with her U.S. counterpart. The remarks come one day before U.S. midterm elections. "We will take action if there is disorderly movement or excessive speculative moves," Katayama said at a press conference on Monday. "We have also been coordinating and discussing with the U.S. side quite frequently, and we expect to continue responding in this manner." Katayama spoke as the U.S. holds elections on Tuesday that will determine leadership of both chambers of Congress. Polls and prediction markets show Democrats are expected to retake the House, while control of the Senate is less certain. If Democrats sweep Congress, it could constrain President Trump's fiscal agenda, thereby pushing down U.S. Treasury yields and the dollar, which would support the yen. "But the president and his cabinet members will not be replaced immediately, and my counterpart will probably be the same person," Katayama said. "We have already issued a joint statement and will continue to act in accordance with it. This applies equally at this very moment." If Democrats tighten scrutiny of AI investment, data center construction and energy costs, Asian stocks, especially AI-related shares, could also come under pressure. This could drag down semiconductor companies in Japan, South Korea and Taiwan as market doubts about the sustainability of the AI boom deepen. Geopolitical risks could further complicate market reactions. A Republican loss could prompt Trump to rely more on executive power and take a harder line on tariffs, Iran and Ukraine. Renewed tensions with Iran could push up oil prices, weighing on Japanese stocks and the broader economy. Trump has hinted at possibly intensifying strikes on Iran after the election, but U.S. Secretary of State Rubio said last Saturday that no decision has been made on new strikes and that Trump prefers a diplomatic solution. Katayama reiterated that Trump and Prime Minister Sanae Takaichi share the same concern about a weak yen, citing their communication at the September leaders' summit. Katayama added that current market conditions have improved compared with when the yen fell below 160 per dollar, but declined to comment on specific exchange rate levels. In early trading on Monday, the yen was trading around 157.84 per dollar. "What is important is to resolutely prevent excessive volatility, speculative moves and disorderly market fluctuations," Katayama said. "I believe both authorities are absolutely unwavering on this in pursuing their respective policy objectives."