The Japanese stock market remained resilient in September despite periods of testing lower levels. SoftBank Group rose, while Mercari fell sharply, and the market is viewed as approaching a turning point ahead of interim earnings.
Japan's stock market in September was affected by monetary policy and exchange-rate trends in Japan and the US. Although a test of lower levels was initially expected, the market was supported by broader buying, particularly in infrastructure and domestic-demand stocks, where demand remained firm. Growth stocks such as AI and semiconductor names also showed resilience toward the end of the month, leaving expectations for a year-end rally intact.
Top gainers included stocks benefiting from strong performance in semiconductor-related materials and SoftBank Group's rise. Semiconductor inspection equipment stocks such as Lasertec also attracted buying following reports concerning ASML Holding. At the other end of the ranking, Mercari fell sharply, down 22.2%, after announcing a ban on listings of Pokémon cards commemorating the franchise's 30th anniversary. Pharmaceutical and food stocks were also weak.
Amid rising interest rates and uncertainty over supply and demand, confidence in buying financial stocks spread, while caution toward the upside for growth stocks persisted. Interest-rate trends continued to determine the market's direction. As Japan's long-term interest rates remained high, there were also periods when the Federal Reserve adopted a more cautious stance on rate hikes, bringing the market closer to a turning point.
Ahead of interim earnings, the market is looking toward its next development. While views are spreading that resilient stocks will support the market, stock-specific moves could vary significantly depending on earnings trends and new catalysts.