TOKYO (AP) — Japan must be on guard against soaring oil prices and a possible slowdown in the U.S. economy, Finance Minister Fukushiro Nukaga said Friday.
''As for the impact of (rising) crude oil prices, they may not only affect the U.S. economy but also the Japanese economy, so we must closely watch them, going forward,'' Nukaga told a news conference.
Nukaga also voiced concerns about the state of the world's largest economy, a key export market for Japan.
''If the U.S. economy slows on various factors, that could affect our country's economy through trade,'' he said. ''We will monitor (developments in the U.S. economy) carefully.''
Fed Chairman Ben Bernanke said Thursday that economic growth would slow noticeably in the U.S. in the coming months while rising oil costs would boost inflation pressures.
Global investors are still concerned that the full extent of the fallout from the credit market crisis — which has led to billions of dollars in losses for major banks and investment firms — is not yet known.
Light, sweet crude for December delivery has surged to record highs lately, approaching $100 a barrel. On Friday, it gained 69 cents to US$96.15 a barrel in Asian electronic trading on the New York Mercantile Exchange.
