After the Tokyo market entered the October trading period, the Nikkei 225 rose sharply. Attention is focused on how fund flows into momentum stocks will develop against the backdrop of strong earnings from U.S. semiconductor maker Micron.
The Tokyo market on the 1st rebounded sharply, with the Nikkei 225 posting a large bullish candle after rising approximately ¥2,200 from the previous day. The closing level suggested the possibility of a breakout from the range, and fund inflows into momentum stocks drew attention.
U.S. semiconductor giant Micron Technology announced results for the June-August quarter of FY2026, with results for the period exceeding market expectations. Strong demand for AI data centers was reassessed positively, and the market also reacted favorably to guidance from August onward.
After the release of the main opinions from the Bank of Japan’s Monetary Policy Meeting, expectations for consecutive rate hikes receded, supporting fund inflows into momentum stocks, particularly AI- and semiconductor-related shares. Pressure from the government side to halt rate hikes eased market concerns, raising expectations for an improved investment environment.
From next week onward, the Bank of Japan’s policy direction and the release of U.S. indicators are expected to be the market’s focus. With overseas investors buying Japanese equities on a net basis after the start of the October trading period and U.S. employment data due to be released, the Nikkei 225 is expected to test the ¥70,000 range again.