The Nikkei 225 ended higher for a fourth straight day, but rising long-term interest rates and movements in the yen weighed on the market. Buying was concentrated in semiconductor and AI-related stocks, following gains in U.S. equities.
The Nikkei 225 rose for a fourth straight day in Tokyo trading on the 24th, ending up ¥495.04 from the previous day at ¥65,513.99. Buying centered on AI and semiconductor stocks, while rising long-term interest rates capped gains and the TOPIX fell for a second straight day. The Nikkei 225 was at one point up more than 6,000 points.
During the holiday period, AI and semiconductor stocks were firm in U.S. markets, and the Nasdaq Composite hit a three-and-a-half-month high. The SOX rose by around 8%, amid expectations that AI investment will generate returns. In Tokyo, high-priced semiconductor stocks lifted the market overall, while rising long-term interest rates prompted declines in high-multiple stocks.
In Japan, the long-term interest rate briefly reached 3.075%, its highest level since August 1996. SoftBank Group also came under selling pressure from concerns over its interest burden after announcing a large corporate bond issue, while financial stocks also reacted weakly.
The ¥160 level is becoming the focus in the foreign-exchange market, with dollar-yen rising into the mid-¥158 range. As pressure for yen depreciation persists against the backdrop of a September Bank of Japan rate hike, the widening U.S.-Japan interest-rate differential is expected to continue driving dollar buying and yen selling.
Speculative positions have also shifted. CFTC data showed that positions turned to a net long yen over the course of one week. Against the backdrop of the U.S.-Japan interest-rate differential, moves are emerging to rebuild yen-short positions.