Japan's Real Wage Growth Streak Extended to Fourth Month In April, Nikkei 225 Declined 1%

Akira Ito
05 Jun, 2026
Tokyo

Japan's benchmark indexes extended losses of the previous session in Friday's trading as technology and AI-related stocks continued to face selling pressure. 

The Nikkei 225 Stock Average dropped 1.6%, and the broader TOPIX eased 0.1%, and the yen hovered at 159.95 against the U.S. dollar. 

For the week, the Nikkei 225 Stock Average edged up 0.2%, and the TOPIX advanced 0.6%. 

Investors remained cautious amid the fragile ceasefire between the U.S. and Iran, and renewed escalation of violence in the Middle East dented hopes of immediate reopening of the Strait of Hormuz. 

On the economic front, Japan's real wages rose for the fourth consecutive month in April, supporting the case for the Bank of Japan to raise rates later in the month. 

 

Real Wages Rise for the Fourth Straight Month In April

The average monthly cash earnings, or nominal wages, per worker increased 3.5% from a year ago in April to 312,425 yen, or $1,900, rising above 3% for the first time in three months in 34 years. 

The monthly update was released by the Ministry of Health, Labor, and Welfare. 

After adjusting for an inflation index of 1.5%, real wages rose 1.9% from a year ago, marking the rise for the fourth consecutive month and the longest positive streak since a seven-month string starting in February 2021.

The annual rise accelerated from a 1.4% increase in March, according to the government data. 

Households of two or more workers spent an average of 328,969 yen, the Ministry of Internal Affairs and Communications said in a separate report.

The spending on food and beverages dropped 0.6%, while expenditure on apparel and shoes plunged 10.9% from a year ago, respectively. 

However, transportation and communication sector spending rose 7.5%, driven by higher demand for passenger vehicles because of the abolition of a tax at the end of March.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 1.6% to 66,407.65, and the broader TOPIX declined 0.1% to 3,947.42. 

Semiconductor equipment makers led the decliners in Friday's trading. 

SoftBank Group, Kioxa Holding, Tokyo Electron, Advantest Corp., and Murata Manufacturing dropped between 1% and 4%.