Aso: Japan Jan-March GDP reflected severe economic conditions

Japan Finance Minister Aso has crossed the wires and explained that they will postpone the deadline of the budget request to Sept 30 as the goverment focuses on coronavirus containment.

Key comments

Japan Jan-March GDP reflected severe economic condition.

Japan April-June GDP will also likely be severe.

Will make sure to support employment and help firms stay in business.

Economic recovery will be quick if govt responds properly.

The comments follow Japan's economy contracting at an annualised rate of 3.4% in January-March, which government data showed on Monday. This was marking the second straight quarter of contraction and meeting the technical definition of recession, due to the coronavirus pandemic." Japan is in a technical recession, (two consecutive quarters of negative economic growth). However, this was well telegraphed and markets risk-on, seeing some weakness in the defensive JPY regardless of the data. The US dollar fell notably against most of the G10s on the day.