The Bank of Japan sees emerging economies exiting recession first, said Kiyohiko Nishimura, the deputy governor of the central bank. This upturn would leak positive effects through to advanced economies, causing private demand to recover, and ultimately stabilising global growth, he said.

Nishimura explained that Japan's financial systems had not suffered as much as the US or Europe from internal factors, such as impaired assets. He maintained, however, that risks to financial sector stability