Japan's Nukaga scuppers sovereign fund plans

Fukushiro Nukaga, Japan's finance minister, said last Friday that the government was unlikely to set up a sovereign wealth fund because of the risks associated with such a move.

"If a loss is incurred [by the fund] how will the Japanese public deal with it?" Nukaga said. "At this moment I don't think a sovereign wealth fund will be created."

Japan has the second-largest amount of foreign exchange reserves in the world after China. The Japanese finance ministry said earlier this month that the