<article><p class="lead">Japan is extending its Covid-19 emergency control measures into next month, targeting to reduce the strain on medical systems and contain new infections ahead of the Tokyo Olympics.</p><p>The government is set to finalise its decision later today to extend a state of emergency in nine prefectures, including Tokyo and Osaka, as the country's medical system remains under significant pressure despite a slowdown in new infections. A panel of experts endorsed the plan earlier today.</p><p>The emergency measures will remain focused on limiting people's movement, including a ban on alcohol sales at bars and restaurants and karaoke entertainment. Major commercial facilities, including department stores and shopping malls, will continue to be asked to close early, while some prefectures may implement stronger measures depending on the Covid-19 situation in each affected prefecture. People will be asked to work remotely, stay at home as much as possible and refrain from travel.</p><p>Japan on 25 April declared a <a href="https://direct.argusmedia.com/newsandanalysis/article/2215038">third state of emergency</a> for 17 days until 11 May, targeting to bring the pandemic under control within a short period of time with stricter measures. But the government has since been forced to extend the emergency period until 31 May and expand it to nine prefectures, as infections spread rapidly in different areas. The government on 23 May also enforced a state of emergency in the southern Japanese prefecture of Okinawa until 20 June.</p><p><a href="https://direct.argusmedia.com/newsandanalysis/article/2215927">Japan's economy</a> contracted during January-March for the first time in three quarters as a state of emergency was enforced for much of the quarter, weighing on economic and manufacturing activity. Tokyo this month downgraded the country's overall economic assessment for a second time this year, citing the impact of the virus emergency on business activity and consumption.</p><p>The state of emergency is set to be lifted on 20 June, just a month before the scheduled 23 July opening of the Tokyo Olympics. The Japanese organisers and Tokyo Olympic committees have agreed to <a href="https://direct.argusmedia.com/newsandanalysis/article/2198030">ban overseas spectators</a> but have not yet decided whether to allow local spectators at the games because of an uncertain outlook for Covid-19 infections in Japan.</p><p>The extended emergency is expected to continue to weigh on Japan's jet fuel demand. Major airlines All Nippon Airways and Japan Airlines this week announced additional cuts to domestic flights next month, citing weak travel demand impacted by the Covid-19 pandemic in the country.</p><p>Domestic gasoline and gasoil demand could also weaken because of the extended travel restrictions.</p><p class="bylines">By Rieko Suda</p></article>