Japan June Wages Revised Up To +0.4% Y/Y......>

JAPAN: Japan June Wages Revised Up To +0.4% Y/Y From -0.4% on Bonuses. Sharply

higher revision from earlier this month comes as summer bonuses now posted a

gain in the broader survey, instead of the sharp drop originally reported.

Average wages now marked the third straight year-on-year increase. However,

overtime pay continued to be weak and average wages still dropped slightly after

adjusting for inflation.

- In real terms, average wages slipped 0.1% on year, revised up from the initial

reading of a 0.8% fall. It remained the first year-on-year drop in three months

after being flat in the previous two months. The weak trend was caused by a rise

in the cost of living, with the total CPI minus imputed rents up 0.5% on year in

June, amid slow base wage hikes.

- Bonuses and other special pay were revised up sharply to a 0.4% increase from

a 1.5% decrease. It was the fifth straight annual rise, instead of the first

drop in five months as reported earlier. Policymakers have been urging firms to

share more profits with workers but firms remain cautious about raising base

wages amid uncertainty over the outlook for global and domestic demand.