Japan needs to keep an eye on the impact of the subprime mortgage crisis on the American and Japanese economies, Economy Minister Hiroko Ota said Nov. 6.

"Financial markets remain confused, and declines in housing investment and prices in the United States will likely continue," Ota said.

"We need to carefully monitor whether (the subprime loan issue) will adversely affect the U.S. real economy and whether it can make a soft landing," she said.

Ota added that the U.S. economy — a vital market of Japan's exporters — does not appear to be in a serious condition as indicated in the stronger-than-expected U.S. jobs data released Nov. 2.

But she sounded cautious about whether a possible U.S. economic slowdown would hamper Japan's growth. "If consumer spending (in the United States) receives a bad influence (from the subprime meltdown), it will inevitably affect the Japanese economy," Ota said.