The Japanese yen reached a seven-month high against the U.S. dollar as markets anticipate interest rate hikes from the Bank of Japan.

The surge is driven by expectations that the Bank of Japan will continue hiking interest rates next week and into next year, supported by data showing Japan's economy grew faster than initially estimated in the April to June quarter. Real wage growth figures also cemented these expectations. The gains in the yen weighed on a jittery stock market, with the Nikkei 225 rising 0.3% and the MSCI Asia-Pacific shares index outside Japan rising 0.5%. South Korea shares rose 2.3% as the country competes with Japan in memory chip production. S&P 500 e-mini futures were 0.1% lower. Investor confidence was bolstered by an acceleration in Chinese export growth during August. Copper prices extended a recent record high as supply shortage concerns grew. In Europe, German DAX futures were up 0.1% and FTSE futures were flat. In the Middle East, Iran threatened the United States with economic warfare and reported firing an advanced missile at U.S. warships, pushing Brent crude to $97.49.