Japan warns global growth may weaken

TOKYO, Feb. 6 (UPI) -- Japan Wednesday indicated the G7 finance ministers are unlikely to agree on a joint effort to address the U.S. sub-prime mortgage crisis.

Financial leaders from Britain, Canada, France, Germany, Italy, Japan and the United States are to meet Saturday in Tokyo to discuss various issues confronting the global economy.

Kyodo news service quoted a senior Japanese Finance Ministry official as saying the fundamentals of global economy remain firm but that its growth rate is expected to weaken because of uncertainties such as the U.S. housing market and rising energy prices.

The official, who was not named, said the G7 will consider how to assess measures taken so far by member economies to fight the U.S. sub-prime crisis, but added, "The most important thing will be to understand how each nation sees the current situation and steers the economy for the future."

The Japanese official said various financial institutions need to speedily disclose all their losses and take appropriate measures, the report said.

The G7 also was expected to discuss steps to make investments by sovereign wealth funds more transparent.

Separately, the Financial Times reported Japan, Britain and Germany apparently have no plans to support a U.S. call for a global economic stimulus package. Such a joint fiscal stimulus was reportedly stressed by David McCormick, the U.S. Treasury's undersecretary for international affairs.