The British Prime Minister, Tony Blair, has called on Japan and Asian countries to reform their financial systems to restore confidence in their battered economies.

On a five-day visit to Japan, he told a local television station that Britain was working hard with other countries to bring an end to the turmoil in Asia.

Mr Blair has yet to hold discussions with the Japanese Prime Minister, Ryutaro Hashimoto, but he has indicated that the financial crisis will be high on the agenda.

Economic optimism in Japan has collapsed since September

"We're obviously working very hard with other countries in order to try and turn the situation round," he said.

"But if the financial system is to work, it has to be open and accountable. That gives people confidence so they know when they get the figures from the government and financial institutions they're genuine."

Indonesia, South Korea and Thailand have all suffered in recent months from huge falls on their stock markets and currencies, prompting intervention from the International Monetary Fund.

The Japanese economy has also been affected by problems in the region.

However, Mr Blair praised Tokyo's efforts to introduce reforms to the financial sector. He said Japan should not under-estimate the enormous strength of its own position and its own economy.
 

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