Japan Average Earnings Growth Accelerates

(RTTNews) - Japan's average earnings logged a faster annual growth in February, data from the Ministry of Health, Labor and Welfare showed on Monday.

Total cash earnings grew 3.1 percent on a yearly basis in February, faster than the 1.8 percent increase seen in January.

However, this increase was largely driven by the sharp 77.4 percent growth in bonus payment. Meanwhile, scheduled earnings growth eased to 1.6 percent from 2.1 percent. Capital Economics economist Marcel Thieliant said the sharp slowdown in regular earnings growth in February is just a sampling anomaly rather than a sign of genuine weakness.

With this year's spring wage negotiations resulting in a larger pay hike than last year's, wage growth should bounce back soon, the economist noted.

There is still a strong case for an interest rate hike from the Bank of Japan over the coming months once the dust from the trade war settles, Thieliant noted.