The Nikkei Average rebounded sharply, briefly recovering to the ¥70,000 range. Buying of semiconductor-related stocks drove the market, with weak U.S. employment data cited as a backdrop.
Following the sharp rise from the morning session, the Nikkei Average ended substantially higher than the previous day at the close. The closing level was ¥69,946.86, after rising as high as ¥70,072.13 intraday. Trading volume was approximately 2.25895 billion shares, and trading value was about ¥7.7509 trillion.
Buying of AI- and semiconductor-related stocks was a key factor lifting the market, and the Nikkei Average posted a sharp rebound of more than ¥1,600. Expectations of an early Fed rate hike receded after the U.S. employment report for September came in below expectations, and the boost to U.S. equities spread to the Japanese market.
Among individual stocks, semiconductor manufacturing equipment makers including Advantest, Tokyo Electron and DISCO traded firmly. Buying also spread to electronic component makers such as TAIYO YUDEN and Murata Manufacturing, while buying led in some stocks including Fast Retailing. The top contributors to the Nikkei Average provided a boost of approximately ¥1,210, while some stocks, including Kioxia Holdings, were lackluster.
At the close, the breadth of the Nikkei Average’s move appeared limited, with advancing stocks accounting for only 56% of the Prime Market as a whole. Stock-specific performance, particularly among semiconductor-related names, is expected to remain a focus for the market.