The Nikkei Average recovered the ¥70,000 range again, closing at ¥70,683, up ¥737 from the previous day. The rise was driven by moves in AI-related stocks, expectations surrounding the US employment report and lower oil prices, while expectations for improved earnings outlooks also continued.
The Nikkei Average extended its gains in Tokyo trading on the 6th, recovering the ¥70,000 range at the close. The 2-day gain was approximately ¥2,374, and the market’s return to the ¥70,000 range is being viewed by market participants as part of some year-end forecasts.
Nomura Securities’ Market Strategy Research Department had raised its August outlook for the Nikkei Average to ¥70,000 at year-end and above ¥67,000 at year-end 2027. It also suggested that the Nikkei Average could reach around ¥80,000 in an upside scenario. It cited EPS growth driven by price increases and a reduction in the number of shares outstanding as factors supporting earnings growth.
Meiji Yasuda Asset Management assessed that earnings growth was being sustained across a broad range of industries, led by AI-related sectors, and expressed the view that Japanese equities would remain stable through the second half of the fiscal year. SBI Securities likewise expects Japanese equities to move toward testing a recovery, while noting that this could influence the market’s reaction.
Interest rate movements and concerns about AI are both in focus. Japan’s 10-year government bond yield has at times reached the high 3% range, and Chief Strategist Hiroki Takashi (広木 隆) expressed the view that around 3.5% should serve as a benchmark. Rakuten Securities cited the possibility that rising interest rates could put pressure on equity valuation multiples, and sees sustained earnings as important for the Nikkei to remain in the ¥70,000 range.