The Japanese economy is in a deep recession. In June, however, production should pick up again.
Dhe industrial production in Japan fell to its lowest level in seven years in the wake of the Corona crisis. As the government announced on Friday on a preliminary basis, production fell by 9.1 percent compared to the previous month. This is the third month in a row that the world’s number three emissions are shrinking. The economy, which was already weakened before the Corona crisis, is now, like Germany, in a recession. The country’s manufacturing companies are anticipating a further 4.1 percent decline in production in May, before production is likely to pick up again in June, at an estimated 3.9 percent, it said.
Japanese stocks also fell on Friday amid mounting tensions between China and the United States over Hong Kong security laws. Investors were waiting for the actions of President Donald Trump, which he wants to announce on Friday. Civil rights activists in the former British colony fear that the government in Beijing will de facto abolish Hong Kong’s special rights.
The Tokyo stock exchange was initially weaker. The Nikkei Index, which comprises 225 values, was 0.3 percent lower at 21,854 points. The broader Topix index fell 0.5 percent and stood at 1570 points.