Nominal wages in Japan rose just 1% year-on-year in May 2025, marking a third straight month of deceleration and falling well short of market expectations of a 2.4% increase. It was the weakest growth since March 2024, driven largely by an 18.7% plunge in special (bonus) payments. Meanwhile, real wages—adjusted for inflation and a key gauge of consumer purchasing power—fell 2.9%, extending their decline to a fifth consecutive month and posting the steepest drop in nearly two years. The broader wage data has yet to reflect the record pay hikes agreed during this year’s spring labor negotiations, as many smaller, non-unionized firms are slower to implement wage increases. The tepid wage growth raises fresh concerns about Japan’s economic outlook, particularly amid heightened global uncertainty following new US tariffs. It also complicates the Bank of Japan’s path to policy normalization, with stagnant real incomes likely to dampen consumer spending and stall broader economic recovery.

Japan Nominal Wage Growth Slows Sharply in May

US President Donald Trump confirmed that tariffs are set to go into effect on August 1, not July 9. 
Trump and Commerce Secretary Howard Lutnick, in an interview with reporters on Sunday, were asked to clarify when the tariffs are scheduled to take effect. "Tariffs go into effect August 1," Lutnick said in response. Earlier, Treasury Secretary Scott Bessent, in an interview with CNN, said that tariffs will revert to April 2 levels on August 1 if no progress is made on signing a deal with the US. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most US trading partners was set to end Tuesday. Meanwhile, the deadline for the US to reach an agreement with the European Union—before EU goods are hit with duties of up to 50%—was set for Wednesday.

Trump's Tariffs Will Take Effect on August 1: Lutnick Says

The NZX 50 fell 47 points, or 0.4%, to 12,719 in morning trade on Monday, halting gains from the previous session and tracking a decline in US stock futures. The downturn came after US President Donald Trump confirmed that new tariffs are set to go into effect on August 1, not July 9. Caution also built as investors anticipated the release of the Fed meeting minutes later this week for guidance on the central bank’s policy path. Domestically, caution deepened further ahead of the RBNZ monetary policy decision, which is due this week, with the market expecting the central bank to hold the interest rate at 3.25%. Most sectors traded in the red, including consumer staples, healthcare, financials, and real estate. Among early losers were Fletcher Building (-2.0%), Ryman Healthcare (-1.7%), South Port NZ (-1.4%), A2 Milk (-1.1%), and ANZ Group (-0.5%), while Fisher & Paykel, Contact Energy, and Infratil each fell 0.6%.

New Zealand Stocks Drop as Tariffs Go into Effect August 1

The S&P Global Egypt PMI declined to 48.8 in June 2025 from May’s three-month high of 49.5, indicating a steeper contraction in the non-oil private sector, though it remained softer than the series average. The latest reading also marked the fourth straight month of decline due to faster falls in new orders and output. In response, firms reduced purchasing activity for the fourth consecutive month, with the pace of decline the fastest in nearly a year. Total inventories stalled in June. Employment fell for the fifth consecutive month, though the rate of job shedding was fractional and the softest observed in the current sequence. Regarding prices, input cost inflation eased to a three-month low, while output cost inflation slowed from May's seven-month high. Looking ahead, business sentiment weakened to the lowest on record, reflecting subdued hopes for new orders amid concerns over geopolitical risks.

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Japan Nominal Wage Growth Slows Sharply in May

Trump's Tariffs Will Take Effect on August 1: Lutnick Says

New Zealand Stocks Drop as Tariffs Go into Effect August 1

Egypt Non-Oil Private Sector Contraction Deepens