Abe acknowledges deregulation is the priority for Japan's growth strategy

Japanese Prime Minister Shinzo Abe, speaking to reporters, has said that he recognises the importance of liberalisation as part of his economic strategy.

I acknowledge deregulation is the priority for our growth strategy. As I decided to join talks of the TPP (Trans-Pacific Partnership), I would like to push forward what needs to be done without hesitation.

Supply-side reforms, or Abe's third arrow, are due to be unveiled on 14 June. These will follow the first and second arrows of fiscal stimulus and monetary easing.

Abe also said that he was watching what have been erratic movements in Japan's markets, but believed that they would calm gradually.

Japan's Nikkei 225 has closed at its session low, down 3.7 per cent. The index has seen a fall of 17 per cent since its peak 10 days ago. Yen has appreciated against the dollar by three per cent during the same period.