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TOKYO (AFP) - Bank of Japan governor Toshihiko Fukui warned Wednesday that a disorderly unwinding of global economic imbalances could undermine global financial stability.

"East Asia has been a beneficiary of a substantial amount of private capital flows from developed economies, and at the same time, an exporter of an even greater amount of capital in the form of foreign reserves," Fukui said.

He said this was inconsistent with the traditional economic theory that capital flows from developed to emerging economies, raising the question about whether there is a misallocation of global savings and investment.

"In any case, disorderly unwinding of the imbalances and accompanying capital flows would have detrimental impacts on global financial stability," Fukui said in a speech in Tokyo.

"It is critical for us to carefully examine the factors underlying the imbalances and the desirable policy for both surplus and deficit economies."

Asia now holds the bulk of the world's foreign reserves at some 2.7 trillion dollars, led by China which alone has more than one trillion dollars.

Economists warn that the reserves are far in excess of what is needed to ensure financial stability.