Japan pledges to support eurozone

"Japan has been making its own contributions to bring stability to European financial conditions, such as by buying debt (issued by the rescue fund) during efforts to support Portugal," Noda said at a press conference following a cabinet meeting.

"We'd like to continue those efforts," he said.

Japan has previously pledged to help boost confidence in the bonds issued by the European Financial Stability Facility (EFSF), amid concerns earlier this year for eurozone nations such as Portugal and Ireland.

Market fears are now once again centered on Greece, which on Monday was given a two-week deadline to drive through drastic new cuts before it can receive a 12-billion-euro payment to ensure it does not default on its sovereign debt.

Regarding assistance for Greece, Noda said: "We will cooperate if there is something that Japan can do."

Time is running out for Athens as it faces an imminent cash crunch that could see it default on its debt payments by mid-July.

The International Monetary Fund, which is funding a third of Greece's first 110-billion-euro bailout, warned decisive action was needed to prevent the crisis from spreading throughout the 17-nation eurozone and beyond.

Markets worry a default on Greek debt could trigger a cascade of problems in Europe's bigger economies, including Spain. Such a domino effect could again hobble the global financial system, much like the massive crisis of 2008.

Showing the extent of international fears over renewed financial contagion, G7 finance ministers from Britain, Canada, France, Germany, Italy, Japan and the United States held a late Sunday-night telephone conference to discuss the Greek debt crisis.

Noda on Tuesday acknowledged that the phone conference took place but declined to offer details on what was said.

Eurozone governments will meet again on July 3 to decide on emergency cash and work out the details of a second bailout for Greece worth more than 100 billion euros.

Prime Minister George Papandreou's government faces a confidence vote on Tuesday as it looks to eventually steer 28.4 billion euros of austerity cuts ($40.65 billion) into legislation.

European Union leaders also stage a summit in Brussels on Thursday and Friday -- with a second bailout for Greece, whose debts currently top 350 billion euros, near the top of a packed agenda.