The light-touch state of emergency appears to have had some success in stemming the surge in cases in the Greater Tokyo area. But with many hospitals reportedly close to full capacity, the government may yet utilise the new law it passed today and force some businesses to close in virus hotspots in order to bring down infections faster. Even so, the news this week that new vaccine minister Kono Taro has signed a contract with Pfizer for enough doses to vaccinate more than half of the population bolsters our view that the economy will surprise to the upside later in the year.
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