The Nikkei average temporarily rose above ¥70,000 to reach a 3-month high. The move was supported by receding expectations for a U.S. rate hike and the G7 agreement to release oil reserves, as well as the uptrend in the U.S. market.
The Nikkei average rebounded in Tokyo trading on the 5th and temporarily rose above ¥70,000. This was its highest intraday level in approximately 3 months, and it traded above the previous day's closing level.
Views spread in the U.S. market that expectations for an early additional rate hike had receded, supporting the market as expectations grew that the Federal Reserve would be less likely to raise rates at this month's FOMC meeting.
In addition, after the Group of Seven countries agreed at an online leaders' meeting on the night of the 2nd, Japan time, to release a total of 100 million barrels from their oil reserves, the anticipated release pushed crude oil prices lower. This was seen as one factor supporting the rise in the U.S. market.
In Tokyo trading on the 5th, a broad range of stocks, led by AI- and semiconductor-related issues, attracted buying, and the Nikkei average was at times more than ¥1,700 above the previous day's close.