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Japan's Nikkei leads losses as Asia-Pacific markets extend declines after Wednesday's sell-off

Asia-Pacific markets fell Thursday, extending their declines after a sell-off in the previous session, with Japan's Nikkei 225 leading losses in the region.

The Nikkei fell 1.15%, while the broad-based Topix was down 0.58%, after the release of Japan's July wage data.

Average monthly cash earnings in the country rose 3.6% year-on-year, a softer rise compared to the 4.5% climb seen in June.

Real wages climbed 0.4% year on year, rising for a second straight month after a 1.1% rise in June.

The strong pay report offers the Bank of Japan more room for a rate hike, which could put pressure on equities. Bank of Japan board member Hajime Takata said the central bank "must keep raising rates if it can confirm that companies will continue to increase spending and wages," Reuters reported.

Other economic data coming from the region include retail sales numbers from Singapore.

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