The Nikkei rose sharply in Tokyo trading on 5 October, closing at ¥69,946.86 and rebounding after two trading days. It briefly recovered to the ¥70,000 level during the session, as buying of AI and semiconductor stocks led the market.
The Nikkei Stock Average closed at ¥69,946.86 in Tokyo trading on 5 October, up ¥1,637.40 from the previous day, rebounding after two trading days. Buying led from the morning, and the gain briefly exceeded ¥1,700 during the session. The index also briefly moved above ¥70,000, recovering to a level not seen for approximately three months, since 6 July.
The backdrop was growing sentiment that the outlook for improvement in the U.S. labor market was weakening. The September employment report came in below market expectations, while downward revisions to employment figures for July and August also had an impact. This strengthened views that expectations for an early U.S. rate hike had receded, and a risk-on trend spread to the Tokyo market.
AI-related and semiconductor-related stocks contributed to trading, with stocks such as Advantest attracting investor buying and leading the market. The dollar-yen exchange rate was trading in the ¥157-per-dollar range, while long-term interest rates and the outlook for U.S. monetary policy remain in focus.