Japan Rengo's second-round wage hike agreed at 5.4%

Japan's largest trade union group’s, Rengo, second-round data of annual labor talk (Shunto) results showed Japanese firms agreed to raise pay by 5.4% this year.

The data is lower than the first-round results, which showed an average wage hike of 5.46% for fiscal 2025, higher than last year's average of 5.1%.

The reading exceeded 5% for the second straight year.

Market reaction

The Japanese Yen (JPY) is off the lows but remains under heavy selling pressure on these headlines, keeping USD/JPY 0.42% higher on the day at 149.42 at the press time.