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"Stop Tokyo Olympics" campaign garnered 350,000 signatures in nine days.
Defeat for Serena, who received an opening round bye in Rome, was a major blow to her preparations for the French Open, starting on May 30.
Japan's top health experts have acknowledged that the COVID-19 pandemic has entered a fourth wave.
Fans hoping for a repeat of the pair's engrossing US Open semifinal last year were left disappointed as Brady froze in the spotlight of her first Grand Slam final.
Three-time Grand Slam champion Osaka will meet Jennifer Brady in the title match.
Serena had looked her sharpest in years at the tournament but 24 unforced errors cost her the Australian Open semifinal against Osaka.
The 39-year-old American went toe-to-toe with the Romanian second seed over 80 engrossing minutes on Rod Laver Arena before she was finally able to move to within two victories of a record-equalling 24th Grand Slam title.
Osaka crushed Hsieh Su-wei 6-2, 6-2.
Williams, 39, is among three Americans who have made it to the quarter-finals at Melbourne Park this year and Wednesday's clash between Jennifer Brady and Jessica Pegula has ensured that at least one from the country will be in the last four.
Osaka battled back from the brink to reach the quarterfinals.