Yen Strengthens, BOJ Hike Looming Over Japanese Markets

Japan's Nikkei 225 index edged up by 0.31% to reach 66,608.42 on Tuesday as investors weighed recent upbeat economic data against a strengthening yen and expectations of an interest rate hike from the Bank of Japan.

The benchmark index advanced despite revisions showing that Japan's second-quarter GDP grew faster than initially reported, and real wages rose by 2.4% in July compared to the same period last year.

However, market analysts believe a BOJ rate hike next week will have a bearing on trading today, with Maki Sawada from Nomura Securities saying that 'given growing speculation regarding a Bank of Japan interest rate rise at its meeting next week, we anticipate today's trading will be rather subdued.'

The yen continued to appreciate, hitting 153.37 per dollar for the first time since February.