MNI POLICY: Japan Govt Keeps Economic View; Ups Production

Japan's government on Wednesday left its main economic assessment unchanged for the fifth straight month saying the situation, while still severe, is improving but for the first time in two months it changed its view on production and capital investment.

"The Japanese economy is still in a severe situation due to the Novel Coronavirus, but it is showing movements of picking up," the report said. The government referred to industrial production also as "picking up," an upgrade from its previous view that industrial production is showing "movements of picking up."

--LOWERS CAPEX

Lowering its assessment on capital investment for the first time in two months, the government said, "business investment is decreasing recently." Its previous view was "business investment is showing weakness."

The government mostly retained its near-term outlook, saying the economy is expected to continue to show signs of improvement supported by the effect of policies and the improvement in overseas economies and as socio-economic activity resumes with some measures to contain the spread of the coronavirus.

However, the report also contained a warning. "Full attention should be given to further downside risks to the domestic and foreign economies which are affected," by the pandemic, the report said.

It also said "attention should be given to the effects of fluctuations in financial and capital markets."