Summer's officially over. Buckle up!

The yen has surged to a seven-month high against the U.S. dollar, with carry trades starting to buckle as markets ramp up expectations for a path of rate hikes from the Bank of Japan.

The Japanese currency traded as much as 1% firmer at 152.89, its strongest since February, just weeks after hitting a four-decade nadir that prompted a rare joint intervention by U.S. and Japanese authorities to steady the currency.

The yen got a further lift from data released on Tuesday showing Japan's economy grew faster than initially estimated in the April to June quarter from the previous three months, alongside real wage growth figures that cemented expectations that the Bank of Japan will continue hiking interest rates next week and well into next year.

The gains for the currency weighed on a jittery stock market, with the Nikkei 225.N225 up 0.3% and MSCI's broadest index of Asia-Pacific shares outside Japan .MISX00000PUS 0.5% higher, led by a 2.3% gain for shares in South Korea.KS11, which competes with Japan in memory chip production. S&P 500 e-mini futures EScv1 were 0.1% lower.