[Japan's Nominal Wages See Largest Increase Since 1997, Expected to Support BOJ Rate Hike Next Week] Driven by strong corporate profits and a tight labor market, Japan's nominal wages have recorded their largest increase in nearly 30 years, likely supporting a Bank of Japan (BOJ) rate hike next week. The Japanese government announced on Tuesday that nominal wages in July rose 4.7% year-on-year, higher than the revised 4% in June. This not only marks the largest increase since 1997 but also far exceeds economists' forecast of 3.8%. Wage growth has exceeded 3% for six consecutive months, the longest streak in 34 years. Adjusted for inflation excluding housing costs, real wages grew by 2.4%, the largest increase in about five years. Base wages rose by 4.1%; for full-time employees, a wage indicator excluding bonuses, overtime pay, and sampling bias increased by 2.7%. The stronger-than-expected wage data is expected to support further tightening of monetary policy by the BOJ. The market has largely priced in expectations of a rate hike at the BOJ meeting next week, with some investors even anticipating another rate increase in a relatively short period. (Cailian Press)