Wage growth raises hopes for Japan economy

OFFICIAL data published on Tuesday showing that monthly pay, including bonuses in Japan rose in July by 2.6 per cent from their level a year earlier, may ease pressure on the Bank of Japan to ease monetary policy further when its policy board meets later this week. This is the first time in 10 years that the rise has exceeded 2 per cent.

It may also temper criticisms that the central bank's aggressive anti-deflation strategy is driving up prices faster than wages and therefore eroding real incomes in Japan, analysts suggested.

The BoJ's strategy is seen as an integral part of "Abenomics" and is thus attracting criticisms of Prime Minister Shinzo Abe's policies too.