Economy minister: Japan shouldn't think about fiscal reform or tax hikes now

Comments from Nishimura:

• Premature to consider fiscal or monetary steps aimed at stimulating consumption as Japan is still focusing on containing the pandemic
• I hope BOJ focuses on efforts to ease corporate funding strain
• Need to take further timely and flexible actions if global surge in infections hits Japan's economy

Two points:

1. They're taking a wait-and-see approach. That's less aggressive than elsewhere
2. The message about not-worrying about the fiscal side right now is near-universal

The case for buying risk assets globally is that rates will stay low for a long time and that governments will keep on spending. Even in ultra-indebted Japan you can see the inclination is more towards spending, but the 6% decline expected in the economy this year will tend to do that.