TOKYO, March 3 : Japanese authorities are closely monitoring financial markets with heightened vigilance as Middle East tensions fuel volatility, Finance Minister Satsuki Katayama said on Tuesday, adding that Tokyo has been in close contact with overseas counterparts. "We are closely watching the market situation with an extremely high level of vigilance," she told reporters, as the widening Middle East conflict fueled worries about countries dependent on energy imports, weighing on the yen. "