Japanese Stocks Fluctuate as BOJ Rate Hike Bets Rise Amid Strong Yen

The Japanese stock market experienced a mixed day on September 8 as the Nikkei 225 rose 0.4% to trade above 66,700 while the Topix slipped 0.6% to around 4,100. The stronger yen is putting pressure on export-focused companies and investors are preparing for a possible Bank of Japan (BOJ) interest rate hike.

The recent economic data has strengthened expectations of tighter monetary policy from the BOJ. Japanese wages in July recorded their fastest annual growth since 1997, while second-quarter GDP growth was revised higher.

Rising oil prices following renewed fighting between the US and Iran are keeping inflation and interest-rate concerns in focus. Several major Japanese companies recorded notable moves during Tuesday's session, with SoftBank Group rising 4.1% and Advantest up 1.4%.