Japan PM tells Lagarde Europe woes, yen rise hurting economy

International Monetary Fund (IMF) Managing Director Christine Lagarde (L) shakes hands with Japan's Prime Minister Yoshihiko Noda during their talks at Noda's official residence in Tokyo July 6, 2012.

TOKYO (Reuters) - Japanese Prime Minister Yoshihiko Noda told International Monetary Fund Managing Director Christine Largarde on Friday that Europe's debt problems are hurting the Japanese economy by causing rises in the yen that do not reflect its fundamentals.

"Market jitters on euro-zone problems, especially one-sided yen rises that do not reflect Japan's economic fundamentals, are inflicting severe damage on economic sentiment," Noda said in a meeting with Lagarde, who is visiting Tokyo, according to a statement issued by Japan's finance ministry.

(Reporting by Leika Kihara; Editing by Michael Watson)