The governor of the Bank of Japan has revealed his concerns about the effects of Europe's debt crisis on Japan and the international financial markets.

Masaaki Shirakawa spoke about his worries to business leaders in Nagoya, central Japan, on Monday.

He noted that Japanese companies may shift their production overseas. This, he said, was due to the historic rise of the Japanese yen stemming from Europe's credit crisis.

He added that this trend could have a negative impact on Japan's labor market as it would curb the number of jobs.
Shirakawa also expressed concern about the rising yield of Italy's government bonds. Italy is the third largest economy within the euro zone.

Later, Shirakawa told reporters that the 2008 financial crisis must not be repeated.

He stressed that he will keep in close contact with other central bank governors to stabilize the financial markets.

Source: http://www3.nhk.or.jp/daily/english/20111128_28.html

Image credit: http://www.nzz.ch/images/__fullSize_1.1197584.1225437556.jpg