Moody's: Coronavirus poses the biggest shock to Japan since the Global Financial Crisis

According to Moody’s Investors Service, the coronavirus pandemic poses the biggest shock to the Japanese economy since the Global Financial Crisis (GFC).

Further points

Japan's 2.7% growth rebound forecast for 2021, but the aggregate economic output will still remain about 5% below the pre-coronavirus baseline.

Japan's real GDP forecast to contract by 6.5% in 2020.

Separately, Japanese Finance Minister Taro Aso was reported by Reuters, saying that the government has no immediate plan to issue 'corona-bonds,' or bonds specially issued to cover costs to combat coronavirus pandemic.

Market reaction

USD/JPY is inching a few pips higher to near 107.75 region, tracking the bounce in the US dollar across the board. However, the further upside appears elusive amid a 0.50% drop in the S&P 500 futures and mixed Asian equities.