TOKYO (AP) — The world's leading economies pledged on Saturday to work together to secure stability in volatile markets but brushed off the idea of a single uniform remedy for the Group of Seven industrialised nations.

A joint statement, issued at the end of an afternoon meeting in Tokyo of the G-7 finance chiefs and central bank governors, acknowledged that "downside risks" remain for the global economy. It also warned of the dangers of the US housing crisis, while assuring that US growth was expected to continue in 2008.

The officials from the United States, Japan, Germany, France, Canada, Britain and Italy also urged oil-producing nations to boost output and encouraged China to accelerate the appreciation of its currency.

"Going forward, we will continue to watch developments closely and will continue to take appropriate actions, individually and collectively, in order to secure stability and growth in our economies," the statement said.

The G-7 had faced calls for increased coordinated action to deal with the US housing problems in sub-prime mortgage loans, financial market turmoil, high oil and commodity prices, and heightened inflation expectations.

The various countries, however, have differed on what measures were appropriate. The US has urged other countries to pursue policies to boost domestic demand, while the Europeans said their economies were resilient and focused more on regulatory coordination.

Japanese Finance Minister Fukushiro Nukaga, who hosted the gathering at a Tokyo hall, said the economic conditions in each nation were so different that a single remedy was not feasible.

"It is important that each nation take measures that are appropriate for that nation," he told reporters after the meeting.

But the participants agreed to be open and work together, he said.

"I think we are in agreement in sending this solid message," he said.

US Treasury Secretary Henry Paulson urged G-7 nations to react "resolutely and proactively" to market turmoil, but warned that there were no quick fixes.

"The current financial turmoil is serious and persisting," Paulson said. "While financial markets are improving, it will take time to work through the current financial turmoil."

But he said the US economy will continue to grow this year, despite the housing credit problems, worries about a slowdown and high energy prices.

"I am confident in the long-term health of the United States economy and I expect that it will continue to grow in 2008," he said.

World financial markets have been battered since the start of the year amid worries about a possible US recession, as well as uncertainty about the full extent of the sub-prime mortgage crisis that has led to billions of dollars in losses at major banks.

The US effort to tackle the credit crunch was a key discussion topic, the officials said. The joint G-7 statement took note of the downturn in the global economy, but it did not forecast a recession.

"The world confronts a more challenging and uncertain environment than when we met last October, though its fundamentals as a whole remain solid," the statement said.

European Central Bank President Jean-Claude Trichet said European economies are basically sound, although he acknowledged that volatile financial markets were setting off "unusually high uncertainty in the real economy".

Trichet said the ECB's priority was to fight inflation. "We will do whatever we need to do to be credible in maintaining price stability in the medium term," he told reporters after the meeting.

Senior ministers had already thrown cold water on hopes that the meeting would produce any sweeping policy agreements — such as a unified move to cut interest rates.

The Fed slashed a key US interest rate by 1.25 points to three percent late last month, and investors have speculated that more cuts may be coming. On Thursday, the Bank of England cut its rate a quarter point to 5.25 percent.

The European Central Bank, which sets policy for the euro-zone, appears to be leaving the door open for a rate cut, but it is unlikely to make as drastic a move as the US because of inflation concerns. The Bank of Japan is even less capable of action with its key rate at 0.5 percent.

Finance chiefs from China, Russia, South Korea and Indonesia joined the G-7 officials at a dinner to expand the discussions after the main meeting.