Japan's economy grew at a faster clip in the second quarter than initially estimated, expanding 0.4 per cent in the three months to June. This growth was supported by business spending that was less weak than the first reading.
Nominal wages rose at the fastest pace in nearly three decades, driven by strong corporate earnings and a tight labor market. Nominal pay climbed 4.7% in July from a year earlier, following a revised 4% increase in June.
These developments strengthen the case for a widely expected Bank of Japan interest-rate hike next week. The bank is likely to remain on course for further monetary tightening, with another increase likely by January 2027.