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Japanese Finance Minister Taro Aso was on the wires in the last minutes, citing that the government could consider increasing the fiscal spending if the coronavirus state of emergency is extended.

Note that Prime Minister Yoshihide Suga is due to hold a press conference later on Tuesday at 1040 GMT, probably announcing an extension to the state of emergency until March 7.

Meanwhile, Japan’s Vaccine Head Taro Kono said that the European Union (EU) curbs on exports are having a negative impact on supply to the country, media outlets report.

Market reaction

USD/JPY has stalled its corrective decline from three-month highs of 105.04, now trading around 104.90, almost unchanged on the day. The risk-on market mood remains supportive of the upside in the major.