Japanese nominal wages keep pace above 3% in August; foreign reserves shrink to $1.18T

Japan’s average cash earnings rose 3.8% year-on-year in August 2026, topping market forecasts of 3.7% and remaining above the 3% threshold for a seventh consecutive month, the longest such sustained run since 1992. Although growth moderated from July’s revised 4.3% pace, the figure marks the 56th consecutive month of nominal wage increases. Base regular pay increased by 3.8%, while overtime pay accelerated to 5.2% compared to a revised 4.5% in July. Concurrently, Japan’s official reserve assets shrank by $29.1B (2.4%) to $1.178T at the end of September 2026, down from $1.208T in August. On the corporate sentiment front, the Reuters Tankan index for Japanese manufacturers climbed to +22 in October 2026, up from +21 in September. This third consecutive monthly improvement brings the manufacturing sentiment gauge to its highest level since December 2021. Equity and currency markets traded lower during the Wednesday session, with the Nikkei 225 Index fell 0.2% to below 70,600, snapping a two-day advance. Meanwhile, the Japanese yen weakened to around 158.5 per dollar. More on Japan economy President Trump Is Serious About The $5,000 Checks DXJ: Currency Hedged Allocation To Japan Remains Favorable (Maintaining Buy) FXY: The Paradox Of A Weak Yen And A BOJ That Is Raising Countries should monitor hedge funds' leverage and interconnections, IMF says If you think U.S. debt had a rough year, don’t look at France Disclaimer Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.