[Japan’s nominal wages hit the largest increase since 1997, expected to support the Bank of Japan’s interest rate hike next week] September 8th, driven by strong corporate profits and a tight labor market, Japan’s nominal wages hit the largest increase in nearly 30 years, which is expected to support the Bank of Japan’s interest rate hike next week. The Japanese government announced on Tuesday that nominal wages increased by 4.7% year-on-year in July, higher than the revised 4% in June. Not only was it the largest increase since 1997, it also far exceeded economists' expectations of 3.8%. Wage growth has exceeded 3% for six consecutive months, the longest streak in 34 years. After adjusting for inflation excluding rent, real wages increased by 2.4%, the largest increase in about five years. Basic wages increased by 4.1%; for full-time employees, a wage measure that excludes bonuses, overtime pay and sampling bias increased by 2.7%. Stronger-than-expected wage data will support further tightening of monetary policy by the Bank of Japan. The market has basically digested expectations that the central bank will raise interest rates at next week's meeting, and some investors also expect that the central bank may raise interest rates again in a relatively short period of time.