Japan's econmin: financial markets overreacting to U.S. economic data

TOKYO Mon Feb 3, 2014 7:05pm EST

Japan's Economics Minister Akira Amari smiles as he attends a news conference after Prime Minister Shinzo Abe (not pictured) announced a raise in the sales tax rate in Tokyo October 1, 2013. REUTERS/Toru Hanai

Japan's Economics Minister Akira Amari smiles as he attends a news conference after Prime Minister Shinzo Abe (not pictured) announced a raise in the sales tax rate in Tokyo October 1, 2013.

Credit: Reuters/Toru Hanai

TOKYO (Reuters) - Japanese Economics Minister Akira Amari said on Tuesday he is worried that financial markets are overreacting to U.S. economic data and that the Federal Reserve's tapering of its government debt purchases is a sign that the world's largest economy is improving.

Amari, speaking to reporters, said that recent gains in corporate profits show that Japan's economy is improving.

U.S. stocks slumped on Monday, with the Standard & Poor's 500 .SPX suffering its worst drop since June, after weaker-than-expected data on the U.S. factory sector provided investors with the latest reason to move away from riskier assets.

(Reporting by Stanley White; Editing by Dominic Lau)

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