Nikkei average recovers 70,000 level for first time in about three months
Version 2: A second day of trading has been added to the report: the Nikkei continued to rise on 6 October, with a morning close of 70,081.53, while Sankei reported overheating and profit-taking even as the index again exceeded 70,000.
In short
Tokyo's Nikkei average rose above 70,000 during trading on 5 October, the first time in about three months, as buying concentrated on semiconductor and AI-related shares. Nikkei reported the morning close at 70,037.61, up 1,728.15 points or 2.53%, after expectations of an early additional US rate increase receded. TBS NEWS DIG said the index later gave up part of the gain and ended at 69,946, and on 6 October the average continued rising to a morning close of 70,081.53, according to Sankei Shimbun.
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Tokyo's Nikkei average rose above 70,000 during trading on Monday 5 October, the first time in about three months, as buy orders concentrated on semiconductor and AI-related shares. NHK reported that buying spread from the moment trading began, and Nikkei said the index exceeded 70,000 on an intraday basis for the first time since 6 July. TBS NEWS DIG put the intraday gain at more than 1,600 points. [ 2 , 3 , 5 , 9 , 11 ]
At the morning close on 5 October the index stood at 70,037.61, up 1,728.15 points, or 2.53%, from the previous Friday, according to Nikkei. Nippon TV News also reported a morning close around 70,037. [ 5 , 6 ]
Nikkei, TBS NEWS DIG and Nikkei's market wrap attributed the gains to receding expectations that the US Federal Reserve would raise interest rates again soon, after US September employment data released on Friday. TBS NEWS DIG said the sentiment spread a sense of reassurance among investors, and Nikkei said heavyweight semiconductor-related shares drew buying in Tokyo. [ 2 , 5 , 7 ]
By the end of the 5 October session the picture was less clear. TBS NEWS DIG reported the average closed at 69,946, up 1,637, after profit-taking appeared. Later the same outlet said AI and semiconductor shares had led the rise but that real estate and transport shares fell, with the impact of rising interest rates the key, adding that optimism was hard to sustain. [ 9 , 11 ]
The rise carried into the next session. Tokyo Shimbun, Nishi-Nippon Shimbun and Sankei Shimbun reported a morning close of 70,081.53 on 6 October, up 134.67 points, after the Nikkei rose above 70,000 again in the morning with a gain at one point exceeding 400 points. Sankei said rising US technology shares were a tailwind and lower US crude futures brightened investor sentiment; it added that overheating was noted because the index had already exceeded 70,000 the previous day, and that profit-taking selling in some AI and semiconductor-related shares pushed the average into negative territory at times. [ 12 , 13 , 14 ]
Nikkei's headline quoted market comments describing the 70,000 level as “firmer than last time” and saying the sense of overvaluation was “not strong”. The available text does not identify who made the comments. [ 8 ]
Why it matters
The level of Tokyo's headline index is being driven by AI and semiconductor-related shares and by expectations about US monetary policy, according to the documents. Business outlets also flag that the recovery may not be durable: TBS NEWS DIG said rising interest rates are the key, with real estate and transport shares falling even as the index recovered, and Sankei reported that overheating was already being noted on the second day.
Key facts
- The Nikkei average recovered the 70,000 level during trading on 5 October, the first time in about three months. [ 2 , 3 , 5 , 9 , 11 ]
- Nikkei said the index exceeded 70,000 on an intraday basis for the first time since 6 July. [ 5 ]
- The morning close on 5 October was 70,037.61, up 1,728.15 points, or 2.53%, from the previous Friday. [ 5 , 6 ]
- Buying was centred on semiconductor and AI-related shares. [ 3 , 5 , 9 , 11 ]
- Nikkei and TBS NEWS DIG linked the rise to receding expectations of an early additional US rate increase after US employment data released on Friday. [ 2 , 5 , 7 ]
- TBS NEWS DIG reported the index closed on 5 October at 69,946, up 1,637, after profit-taking appeared. [ 9 ]
- On 6 October the morning close was 70,081.53, up 134.67 points, with the gain at one point exceeding 400 points. [ 12 , 13 , 14 ]
- Sankei reported that profit-taking selling appeared in some AI and semiconductor-related shares on 6 October as overheating was noted, and the index at times fell into negative territory. [ 14 ]
Confirmed by several sources
- The Nikkei average recovered the 70,000 level during trading on 5 October, the first time in about three months. [ 2 , 3 , 5 , 9 , 11 ]
- Buying was concentrated in semiconductor and AI-related shares. [ 3 , 5 , 9 , 11 ]
- The morning close on 5 October was 70,037.61, up 1,728.15 points from the previous Friday. [ 5 , 6 ]
- The rise followed reduced expectations of an early additional US rate increase after US employment data. [ 2 , 5 , 7 ]
- On 6 October the Tokyo market's morning close was 70,081.53, up 134.67 points. [ 12 , 13 , 14 ]
Still unclear
- The index's closing level for 5 October. Only TBS NEWS DIG gives a closing figure of 69,946, below 70,000; the other documents describe the intraday recovery and give only the morning close, so the closing level is not corroborated.
- Whether the 70,000 recovery can be sustained. TBS NEWS DIG said optimism was hard to maintain with rising interest rates the key, and Sankei reported overheating and intraday falls into negative territory, while the other documents report the gains without this caveat.
- Who made the market comments that the level was “firmer than last time” and that the sense of overvaluation was “not strong”. The comments appear only in a Nikkei headline, and the available document text does not identify who was quoted.
- Why real estate and transport shares fell while the index recovered. This is reported only by TBS NEWS DIG, which links it to the impact of rising interest rates without further detail.
What local media are saying
Timeline, local time
- Nippon TV News and TBS NEWS DIG report the Nikkei average recovering the 70,000 level on 5 October, with TBS citing an intraday gain of more than 1,600 points. [ 1 , 2 ]
- NHK reports the index recovered 70,000 for the first time in three months, with buying from the start of trading. [ 3 ]
- Nikkei reports the morning close at 70,037.61, up 1,728.15 points or 2.53%, and says the index last exceeded 70,000 intraday on 6 July. [ 5 ]
- Nikkei publishes market comments describing the level as firmer than last time with no strong sense of overvaluation. [ 8 ]
- TBS NEWS DIG reports the index finished on 5 October at 69,946, up 1,637, after profit-taking emerged. [ 9 ]
- TBS NEWS DIG reports AI and semiconductor shares led the rise but real estate and transport shares fell, with rising interest rates the key and optimism hard to sustain. [ 11 ]
- On 6 October the morning close is reported at 70,081.53, up 134.67 points, with the gain at one point exceeding 400 points and overheating noted after the previous day's rise. [ 12 , 13 , 14 ]