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Japan to lift emergency state for Osaka, Kyoto, Hyogo

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By Sakura Murakami

TOKYO (Reuters) – Japan will lift its state of emergency in Osaka, Kyoto and Hyogo on Thursday as the number of new coronavirus infections drops, Economy Minister Yasutoshi Nishimura said, amid hopes the move will help the world’s third-largest economy to recover.

Tokyo and four other prefectures, including the northern island of Hokkaido, would remain under the state of emergency – which has already been lifted for much of the country.

“I believe it is safe to lift the state of emergency in Kyoto, Osaka, and Hyogo given that the number of new infections in recent days are under 0.5 cases per 100,000 people and medical services are under control,” Nishimura told the experts at the start of their meeting, which was open to the media.

Nishimura made the announcement after a panel of experts, whose approval is needed, signed off on the move.

Japan has not had the explosive surge seen in many other countries, with 16,433 confirmed cases including 784 deaths as of Wednesday, according to public broadcaster NHK.

But the outbreak and restrictions on activity and business under the state of emergency have already tipped the economy into recession. Prime Minister Shinzo Abe, like other world leaders, has been striving to balance the need to contain the pathogen’s spread with the need to keep the economy running.

So far, the western prefectures of Kyoto, Osaka, and Hyogo are averaging at 0.09 infections per 100,000 people, in contrast with 0.59 for Tokyo and surrounding areas and 0.69 for Hokkaido.

The availability of tests and medical services will also be factored in to the final decision.

New cases in Tokyo have recently dropped to single digits, while the western metropolis of Osaka has seen no new cases.

The move to drop Kyoto, Osaka, and Hyogo from its list of prefectures with curbs in place to prevent the spread of the coronavirus comes a week after Prime Minister Shinzo Abe announced that the blanket state of emergency instated across Japan would be lifted in most places.

(Reporting by Sakura Murakami and Hitoshi Ishida; Editing by Chang-Ran Kim and Stephen Coates and Harry Miller)

Source:-the-guardian

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Canadian retail sales slide in April, May as COVID-19 shutdown bites

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december retail sales

Canadian retail sales plunged in April and May, as shops and other businesses were shuttered amid a third wave of COVID-19 infections, Statistics Canada data showed on Wednesday.

Retail trade fell 5.7% in April, the sharpest decline in a year, missing analyst forecasts of a 5.0% drop. In a preliminary estimate, Statscan said May retail sales likely fell by 3.2% as store closures dragged on.

“April showers brought no May flowers for Canadian retailers this year,” Royce Mendes, senior economist at CIBC Capital Markets, said in a note.

Statscan said that 5.0% of retailers were closed at some point in April. The average length of the closure was one day, it said, citing respondent feedback.

Sales decreased in nine of the 11 subsectors, while core sales, which exclude gasoline stations and motor vehicles, were down 7.6% in April.

Clothing and accessory store sales fell 28.6%, with sales at building material and garden equipment stores falling for the first time in nine months, by 10.4%.

“These results continue to suggest that the Bank of Canada is too optimistic on the growth outlook for the second quarter, even if there is a solid rebound occurring now in June,” Mendes said.

The central bank said in April that it expects Canada’s economy to grow 6.5% in 2021 and signaled interest rates could begin to rise in the second half of 2022.

The Canadian dollar held on to earlier gains after the data, trading up 0.3% at 1.2271 to the greenback, or 81.49 U.S. cents.

(Reporting by Julie Gordon in Ottawa, additional reporting by Fergal Smith in Toronto, editing by Alexander Smith)

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Canadian dollar notches a 6-day high

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Canadian dollar

The Canadian dollar strengthened for a third day against its U.S. counterpart on Wednesday, as oil prices rose and Federal Reserve Chair Jerome Powell reassured markets that the central bank is not rushing to hike rates.

Markets were rattled last week when the Fed shifted to more hawkish guidance. But Powell on Tuesday said the economic recovery required more time before any tapering of stimulus and higher borrowing costs are appropriate, helping Wall Street recoup last week’s decline.

Canada is a major producer of commodities, including oil, so its economy is highly geared to the economic cycle.

Brent crude rose above $75 a barrel, reaching its highest since late 2018, after an industry report on U.S. crude inventories reinforced views of a tightening market as travel picks up in Europe and North America.

The Canadian dollar was trading 0.3% higher at 1.2271 to the greenback, or 81.49 U.S. cents, after touching its strongest level since last Thursday at 1.2265.

The currency also gained ground on Monday and Tuesday, clawing back some of its decline from last week.

Canadian retail sales fell by 5.7% in April from March as provincial governments put in place restrictions to tackle a third wave of the COVID-19 pandemic, Statistics Canada said. A flash estimate showed sales down 3.2% in May.

Still, the Bank of Canada expects consumer spending to lead a strong rebound in the domestic economy as vaccinations climb and containment measures ease.

Canadian government bond yields were mixed across a steeper curve, with the 10-year up nearly 1 basis point at 1.416%. Last Friday, it touched a 3-1/2-month low at 1.364%.

(Reporting by Fergal Smith; editing by Jonathan Oatis)

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Toronto Stock Exchange higher at open as energy stocks gain

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Toronto Stock Exchange edged higher at open on Wednesday as heavyweight energy stocks advanced, while data showing a plunge in domestic retail sales in April and May capped the gains.

* At 9:30 a.m. ET (13:30 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 16.77 points, or 0.08%, at 20,217.42.

(Reporting by Amal S in Bengaluru; Editing by Sriraj Kalluvila)

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