FURTHER YEN RISE WOULD HURT JAPAN ECONOMY, SUMITA Bank of Japan Governor Satoshi Sumita said a further yen rise would have adverse effects on the Japanese economy. He told Japanese business leaders the Bank of Japan will continue to take adequate measures, including market intervention, to stabilize exchange rates if necessary, in close cooperation with other major industrialized nations. He said the current instability of exchange rates will not last. Six major nations - Britain, Canada, France, Japan, the U.S. And West Germany - agreed in Paris last month to act together to hold currencies stable. Sumita said the Bank of Japan will continue to pursue adequate and flexible monetary policies while watching economic and financial developments in and outside Japan. He said the decision to cut the discount rate on February 20 was a hard choice for the Bank because monetary conditions had already been sufficiently eased. To prevent a resurgence of inflation, the Bank will take a very cautious stance regarding developments stemming from easy credit conditions, he said. He said the latest discount rate cut to 2.5 pct should stabilize exchange rates and expand domestic demand. Commenting on the dollar's fall below 150 yen, Sumita reiterated he cannot find any specific reason for the currency's weakness. The market undertook speculative dollar selling by reacting to overseas comments by monetary authorities and trade tension, he said. Sumita repeated that the Japanese economy may gradually recover in the latter half of the 1987/88 fiscal year ending April 1, 1988, provided exchange rates stabilize.