Japan official says government ready to act if necessary to quell market volatility

A senior Japanese official says the government is prepared to "take appropriate measures," if necessary, to quell volatility in the financial markets.

Chief Cabinet Secretary Yoshihide Suga said Tuesday that Japan's economy remains "on track for a moderate recovery."

But he acknowledged that recent swings in share prices and foreign exchange markets have taken a toll.

Suga said Japan was coordinating on a daily basis with the central banks and economic ministers of other major economies.

On Tuesday, Japan's main share index, the Nikkei 225, sank 4 percent to 17,806.70 in a session that saw the benchmark swing between positive and negative territory. It fell 4.6 percent on Monday.

Share prices had surged in Japan over the past three years on strong monetary stimulus and a weakening in the yen.