Japanese equities fell on Tuesday, ending a two-day winning streak as the yen rose to its highest level since February. The Nikkei 225 dropped 1.7% to close at 65,269, while the broader Topix fell 1.83% to 4,050. The stronger yen affected export-focused stocks, which can see reduced overseas earnings converted into yen. Markets were cautious ahead of a likely Bank of Japan rate hike, supported by stronger economic data. July wages had their fastest growth since 1997, and second-quarter GDP growth was revised up. Higher oil prices due to US-Iran tensions increased inflation and interest rate concerns, with technology stocks experiencing significant declines. Taiyo Yuden fell 7.9%, Ibiden declined 6.3%, Kioxia Holdings was down 3.6%, Fujikura by 3%, and Advantest by 2%.