Japan Real Wages Jump 1.9% in April, Intensifying BOJ Rate-Hike Pressure

Real wages climbed 1.9% y/y in April with nominal wages up 3.5%, the strongest streak in 34 years, while household spending fell less than expected at -0.5%. The latest data follow a period of mixed signals: a ¥3 trillion-plus energy support package and unchanged moderate-recovery assessment in late May, cooling Tokyo CPI, record-low unemployment, and strong retail sales, offset by stalled Q1 capex at 0.0% y/y. Manufacturing PMI eased to 54.5 but remained expansionary, while services PMI flatlined at 50.0 in May amid record input costs tied to Middle East conflict, heightening stagflation risks for the Japan 225.