In an emergency statement as markets opened this morning, Bank of Japan governor Haruhiko Kuroda promised to inject liquidity into markets and hinted at raising asset purchases, indicating that Japan’s central bank is moving into crisis mode.

“The Bank of Japan will closely monitor future developments, and will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases,” Mr Kuroda said in the statement.

This is the second pledge within days from a G7 central bank, with the US releasing a s...