Japan’s Finance Minister Calls for G20 Cooperation to Stabilize Markets

At finance meetings in Washington, Japanese Finance Minister Katsunobu Kato urged G20 nations to work together to stabilize global financial markets that have been unsettled by a variety of forces. Speaking to counterparts and observers, Kato emphasized the need for close cooperation, timely information sharing, and coordinated action to prevent spillovers from regional tensions and policy disputes into broader economic instability.

Kato identified several key drivers of recent market volatility. He pointed to geopolitical developments, including Russia’s invasion of Ukraine, and to trade tensions stemming from US tariff policies and the countermeasures adopted by some trading partners. According to Kato, these factors have contributed to uncertainty in both financial markets and real economic activity, underlining the importance of vigilant, collective responses by major economies.

In urging a coordinated approach, Kato stressed the role of the G20 as the primary forum for addressing global economic risks. He called for members to carefully monitor evolving conditions, share timely and accurate information, and coordinate policies where appropriate to maintain financial stability and support sustainable growth. His remarks highlighted the interconnected nature of today’s global economy, where shocks in one region or sector can quickly propagate across borders through trade, finance, and investor sentiment.

Kato also noted his planned bilateral meeting with US Treasury Secretary Scott Bessent on Thursday. He indicated that such high-level discussions between finance and treasury officials are an important complement to multilateral work, allowing for more detailed exchanges on market conditions and policy responses. While reiterating the need for multilateral coordination, Kato suggested that bilateral dialogue can help clarify concerns, reduce misunderstandings, and align actions among major partners.

During G7 discussions, Kato raised concerns about China’s excess production capacity and its potential effects on global markets and trade balances. He advocated for joint action to address what he described as domestic imbalances in China’s industrial sectors, arguing that tackling these issues would contribute to more balanced and sustainable global growth. Kato framed the challenge as one that requires cooperation and constructive engagement among the world’s largest economies.

The minister’s remarks reflect broader anxieties among policymakers about the combination of geopolitical friction, shifting trade policies, and structural overcapacity in certain industries. Stabilizing markets, he argued, is not only about preventing short-term turbulence but also about safeguarding longer-term prospects for investment, employment, and international trade. For that reason, he called on G20 members to remain alert to developments and to be prepared to use policy tools in a coordinated fashion if needed.

Financial market stability typically benefits from clear communication, transparency, and timely policy responses. In that context, Kato urged sharing of information on market moves, capital flows, and policy intentions so that authorities can better assess risks and calibrate responses. He emphasized that cooperation does not imply uniformity of policy, but rather pragmatic coordination designed to reduce harmful spillovers and restore confidence when markets are dislocated.

Though Kato’s comments were framed around current pressures, the underlying message was forward-looking: major economies must work together to reinforce the architecture that supports global financial stability. By combining multilateral discussions within the G20 with targeted bilateral engagement—such as his meeting with the US Treasury—he suggested policymakers can more effectively manage shocks and steer the international economy toward a more stable and balanced trajectory.

In summary, Katsunobu Kato used the Washington finance meetings to press for stronger cooperation among G20 countries. He named geopolitical conflict, trade tensions, and structural overcapacity as key contributors to market instability and called for vigilant monitoring, information sharing, and coordinated actions to protect global financial and economic stability while promoting balanced growth.