The Nikkei 225 rose sharply in the Tokyo market on 1 October, closing at ¥68,956.72. Strong US earnings and yen depreciation provided support, while long-term interest rate trends also underpinned the market.
On 1 October, the Nikkei 225 ended trading in the Tokyo market at ¥68,956.72, up ¥2,203.00 from the previous day's close and its highest level in about one and a half months. The gain temporarily exceeded ¥2,000 during trading, recovering the psychologically important ¥68,000 range.
The sharp rise was driven largely by the trend of buying in technology stocks in the US market the previous day. In particular, strong earnings from memory semiconductor giant Micron Technology concentrated funds in AI-related and semiconductor stocks, driving the market higher.
Yen depreciation also supported Japanese stocks, spreading buying among exporters. The dollar strengthened, and the view that the Bank of Japan's Summary of Opinions did not contain material indicating stronger expectations for consecutive rate hikes acted as a factor behind yen depreciation.
At the same time, elevated US long-term interest rates and heightened tensions in the Middle East are being watched as risks. The US 10-year Treasury yield temporarily rose to 5.13%, and long-term interest rates may continue to rise in part because of the US-Japan interest-rate differential. There is also speculation that a rise in oil prices caused by heightened Middle East tensions could increase the risk of higher corporate costs.