The Nikkei 225 closed at ¥70,683.98, up ¥737.12 from the previous day, recovering to the ¥70,000 level for the first time in 3 months. Buying in AI- and semiconductor-related stocks strongly led the market.
The Nikkei 225 rose ¥737.12 from the previous day to ¥70,683.98 on the Tokyo market on 6 October, recovering the ¥70,000 threshold at the close for the first time in about 3 months. Although it briefly exceeded ¥70,000 during the previous day's trading, buying momentum also strengthened during trading on the 6th, and the gain widened after 3 p.m.
Artificial intelligence (AI) and semiconductor-related stocks led the market, with notable buying in Advantest, Tokyo Electron and other names. Reports indicated that gains in these 2 stocks alone pushed the Nikkei 225 up by approximately ¥700. A total of 1,153 stocks, or about 70% of the TSE Prime Market, advanced. Trading value reached ¥730.48 billion and trading volume reached 2.137 billion shares. TOPIX also closed 38.34 points higher at 4183.56, while a slight decline in crude oil prices also supported fund inflows.
By sector, nonferrous metals, precision instruments and banks performed well, while information and communications declined. The market remained firm even as attention focused on long-term interest rate trends. Ahead of the start of interim earnings announcements, expectations for earnings upside against a backdrop of solid domestic demand are cited as a factor supporting investor sentiment, and the market is expected to consolidate its gains toward establishing the ¥70,000 level.
Another factor was reduced concern over U.S. monetary policy. The September nonfarm payrolls figure came in below market expectations, causing expectations for a Federal Reserve rate hike to recede and providing reassurance to the equity market, according to analysis. Domestically, expectations for interim earnings announcements from late October onward have strengthened, and expectations for earnings upside are seen as supporting active buying by investors.