FOCUS: Prospects of slow wage growth fuel deflation fears amid pandemic

A return to deflation is a nightmare scenario for Japanese policymakers after years of arduous efforts to prevent prices from falling, but the coronavirus pandemic is raising fears that it may become a reality. The Japanese economy is increasingly facing downside risks following a second state of emergency declared over the novel coronavirus that will be in place until Feb. 7 in Tokyo, Osaka and some other populous areas, hitting demand especially in the services sector. With annual wage negotiations between management and labor unions getting into full swing in February and March, companies a…

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HEDGE accordingly