Japan to partially lift Covid-19 state of emergency

Market: Coal, Crude oil, Electricity, LPG, Metals, Natural gas, Oil products
26/02/21

Japan is lifting its second state of emergency at the end of this month in areas where the spread of Covid-19 has significantly slowed but will keep Tokyo and nearby areas under emergency control at least until 7 March.

The Japanese government today decided to lift the state of emergency in Osaka and its nearby Hyogo and Kyoto prefectures, Aichi and its adjacent Gifu prefecture, as well as Fukuoka prefecture on 28 February, a week earlier than the originally scheduled 7 March. The government has confirmed that new infections in these areas have been contained, easing the pressure on local medical services.

The governors of Osaka, Hyogo, Kyoto and Aichi earlier asked the government for an early end to the emergency, seeking to give relief to local businesses and swiftly restore the economy. They pledged to gradually lift but keep necessary control measures in place to contain Covid-19 infections.

Japan enforced a second state of emergency in January this year in the wake of a rapid rise in new Covid-19 infections. The emergency was originally planned to be in place for a month but was later extended until 7 March to bring the Covid-19 situation more under control and avoid another wave of infections as much as possible. Japan rolled out its vaccination programme in mid-February.

Tokyo and its neighbouring prefectures of Chiba, Kanagawa and Saitama remain under the state of emergency. The spread of new infections has slowed but is showing signs of a rebound in some areas. The daily toll of new infections has stayed below 500 for 20 consecutive days in Tokyo, with 270 new infections reported today. New Covid-19 infections peaked at 2,520 on 7 January.

Japan's economy has been pressured by a slowdown forecast under the state of emergency. But it remains uncertain if it has dealt a sizeable blow to the economy. The country posted its first annual economic decline since 2009 last year.

Sales of new passenger cars posted an 8pc increase in January compared with a year earlier, while domestic car output continued to fall because of a shortage of car parts. Travel restrictions continued to dampen jet fuel demand and curbed Japanese crude imports last month, but LNG imports increased as utilities aggressively sought cargoes to address the country's power shortage and replenish stocks.

By Rieko Suda

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