Japan's Real Wages Increased Seventh Consecutive Month In July, Second-Quarter GDP Growth Revised Higher

Akira Ito
08 Sep, 2026
Tokyo

Japan's indexes advanced in listless trading on Tuesday, as a stronger yen weighed on the market sentiment. 

The Nikkei 225 Stock Average increased 0.3%, the broader TOPIX decreased 0.6%, and the yen traded at a seven-month high of 153.44 against the U.S. dollar. 

A stronger yen weighs on earnings prospects of Japan's export-driven industries while making Japanese assets more expensive for foreign investors.  

Investors factored in a rate hike at the mid-September meeting after July's nominal wages rose at the fastest pace since 1997 and Japan's second-quarter GDP was revised slightly higher.  

However, elevated crude oil prices following renewed U.S.-Iran fighting kept inflation risks and interest rate concerns firmly in focus.  

 

Japan's Second-Quarter GDP Growth Revised Higher

Japan's second-quarter GDP growth was revised higher to 0.4% from the previous estimate of a rise of 0.3%, according to a report released by the Cabinet Office. 

The economic expansion from the previous quarter was driven by an upward revision in government spending to 1.7% from the previous estimate of 1.6% and a smaller decline in business estimates of 0.9% from the previous estimate of a decline in 1.2%. 

 

Japan's Nominal Wage Growth Streak Extended In July to Longest in 34 Years 

Japan's real wages advanced for the seventh consecutive month in July, driven by higher summer bonuses, government data showed. 

Nominal wages per worker, including base and overtime pay, increased 4.7% to 436,401 yen, or $2,830, the Ministry of Health, Labor and Welfare said. 

Nominal wages rose more than 3% for the sixth consecutive month, marking the longest such streak in more than 34 years. 

Real wages, after adjusting for inflation, expanded for the seventh month in a row and marked the longest positive streak since February 2021.   

Nominal wage growth was supported by a 6.3% rise in special earnings to 134,819 yen, as labor unions demanded a higher share of elevated corporate profits.  

Japan's real wages advanced for the seventh consecutive month in July, after falling in the previous 12 consecutive months. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 66,611.43, and the broader TOPIX fell 0.6% to 4,103.11. 

AI- and semiconductor-linked stocks dominated in Tuesday's trading in Tokyo. 

Fujikura Ltd. increased 1.2% to ¥5,306.0, Advantest Corp. gained 2.8% to ¥35,450.0, Tokyo Electron decreased 0.2% to ¥55,720.0, and SoftBank Group advanced 6.8% to ¥6,643.0. 

Taiyo Yuden dropped 5.2% to ¥9,319.0, Ibiden Co. fell 1.9% to ¥21,795.0, and Murata Manufacturing decreased 4.8% to ¥7,252.0.