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flag Japan's 2026 wage talks push for 5%+ raises amid strong labor market and corporate profits, with rate hike talks looming.

flag Japan’s 2026 wage negotiations show strong momentum for 5% or higher pay increases, driven by a tight labor market and corporate profits, despite U.S. tariff pressures. flag Labor unions, including Rengo, are pushing for record hikes similar to 2025’s 5.52% increase. flag A Reuters poll shows 72% of companies plan to maintain current wage growth, with economists projecting averages of 4.88% to 5.2%. flag The Bank of Japan, monitoring wage trends closely, may raise rates in December, with Governor Kazuo Ueda expected to provide clues in a December 1 speech.

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