The iShares MSCI Japan ETF (EWJ) surged 5.02% during the after-hours session on Tuesday, marking a significant upward movement for the Japan-focused exchange-traded fund.
The sharp rise appears linked to newly released economic data showing Japan's inflation-adjusted wages increased at the fastest year-on-year pace since 2021. The wage growth figures, which exceeded economists' forecasts, are seen as bolstering the case for the Bank of Japan to consider an interest rate hike as early as this month.
Market participants likely view the stronger wage data as a positive signal for Japan's economic outlook, potentially indicating increased consumer spending power and sustained economic momentum that could benefit Japanese corporations tracked by the ETF.
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