Japan’s Finance Minister Shunichi Suzuki said on Tuesday that it was "a little difficult" at present to confirm the definite impact of Russia's debt default on the economy.

Key quotes

"The ratio of investments in Russia as part of Japan's overall foreign bond investments is limited.”

"Moves in Russian government bonds are likely to result in limited direct losses for Japanese investors, including financial institutions."

Separately, Japan Chief Cabinet Secretary Matsuno announced that they will start incentive programme for power-saving households from August.

Market reaction

A renewed risk-aversion wave has hit markets, as they reassess the implications of tighter monetary policies and the new sanctions against Russia. USD/JPY is falling in sync with the Treasury yields, now trading at 135.19, down 0.16% so far.