Japan seeks to end Tokyo's state of emergency, eyes $930 bln stimulus

Japan is expected to lift its state of emergency over Tokyo, as it eyes a fresh stimulus relief package worth nearly $930 billion.

Gloria Tso reports.

Japan is expected to lift its state of emergency over Tokyo as it weighs an unprecedented relief package worth more than 900 billion dollars.

The global health crisis has tipped the world's third-largest economy into recession, its deepest slump since World War II.

It's also plunged Prime Minister Shinzo Abe's approval rating to its lowest in nearly a decade.

Mostly comprising of financial aid for companies, the proposed stimulus follows a $1 trillion plan deployed last month.

The combined spending brings the total stimulus to about 40% of Japan's GDP.

But paying for the big spending plans will force the government to add to Japan's debt pile, which is already twice the size of its economy.

Japan lifted social distancing measures for most of the country on May 14, but the government has kept Tokyo and four other prefectures under watch.

If the measures in those regions are lifted, Japan would have no remaining regions under its state of emergency, which was first instated on April 7.

The government will seek approval for the lift from key advisers on Monday (May 25).