Comments by BOJ deputy governor, Masayoshi Amamiya
Japan is also one of the countries that will be heavily impacted by the economic damage caused by the coronavirus outbreak on the Chinese economy.
Not only is Japan a popular travel destination for Chinese tourists, but the Japanese economy is very closely linked - businesses and supply chains - to China as well.
The headline is something I alluded to just a little over a week ago:
"However, if the number of reported cases starts to increase rather drastically, the fear is that it could have potential spillover implications to the Chinese economy - the services sector especially, as we have seen with the SARS virus almost two decades ago.With the Chinese economy having a much tighter stranglehold over the global economy in today's environment, bad news for China would also have a negative impact on emerging markets and other economies around the world too.As such, that would result in a more serious setback for risk until the situation feels more in control and blows over in due time. So, while the fear has receded a little for now, it doesn't mean that we have completely moved past this issue just yet."
