Japan Market Daily

On October 13, after a three-day weekend, the Nikkei 225 fell for a fourth straight session, closing down 1,253.40 yen (-1.82%) from the previous Friday at 67,777.52. The TOPIX, by contrast, rose 5.86 points (+0.14%) to 4,110.67. AI and semiconductor stocks were sold after the U.S. semiconductor index fell 2.67% over the holiday, and higher crude oil prices triggered by an attack on Saudi Arabia by pro-Iranian militants also weighed on the market. By contribution, Tokyo Electron dragged the index down by about 450 yen, while Fast Retailing lifted it by about 163 yen. On the TSE Prime Market, 1,137 stocks rose against 378 decliners, and 26 of 33 sectors gained. Marine transportation led the gainers, while nonferrous metals, electrical appliances, and information and communications were among the decliners. Turnover was 7.9640 trillion yen. In Tokyo forex trading, the dollar stood around 158.21 yen as of 5 p.m.

On October 9, the Nikkei 225 edged lower for a third straight session, closing down 11.19 yen at 69,030.92. The TOPIX, by contrast, rebounded 13.35 points (+0.33%) to 4,104.81. The Nasdaq Composite fell again in the previous U.S. session, and higher crude oil prices amid rising Middle East tensions, along with reports about OpenAI's revenue, weighed on AI and semiconductor stocks, so the Nikkei opened 393 yen lower. After that, bargain buying in reaction to a drop of more than 1,600 yen over the previous two days narrowed the losses. By contribution, Fast Retailing dragged the index down by about 244 yen and SoftBank Group by about 192 yen, while Advantest lifted it by about 146 yen. By sector, marine transportation and services rose, while banks and retail fell. Turnover on the TSE Prime Market was 7.8454 trillion yen. In Tokyo forex trading, the dollar moved between 157.76 and 158.14 yen.

On October 8, the Nikkei 225 extended its decline, closing at the day's low of 69,042.11, down 993.60 yen (-1.42%). The TOPIX also fell 62.65 points (-1.51%) to 4,091.46. In the previous U.S. session, higher crude oil prices heightened inflation concerns and U.S. long-term interest rates rose, weighing on the market. Short-term overheating after the rally since September 16 was also noted, and profit-taking increased. By contribution, SoftBank Group dragged the index down by about 218 yen, Tokyo Electron by about 157 yen, and TDK by about 90 yen, while Recruit Holdings lifted it by about 20 yen. By sector, marine transportation, services, and rubber products rose, while nonferrous metals, glass and ceramics products, and machinery fell. Turnover on the TSE Prime Market was 7.6133 trillion yen. In Tokyo forex trading, the dollar hovered around 158.20 yen.

On October 7, the Nikkei 225 fell for the first time in three sessions, closing down 648.27 yen (-0.92%) at 70,035.71. The TOPIX also slipped 29.45 points (-0.70%) to 4,154.11. In reaction to the rapid gains through the previous day, profit-taking led from the open, and losses widened centered on high-priced semiconductor stocks. Persistently high domestic long-term interest rates and uncertainty over the Middle East also weighed on the market. By contribution, Tokyo Electron dragged the index down by about 154 yen and Advantest by about 121 yen. By sector, electric power and gas, rubber products, and information and communications rose, while banks, nonferrous metals, and securities and commodity futures fell. Turnover on the TSE Prime Market was 7.6713 trillion yen. In Tokyo forex trading, the dollar rose to 158.50 yen as remarks by Bank of Japan board member Sato dampened expectations of aggressive rate hikes.

On October 6, the Nikkei 225 extended its gains, closing up 737.12 yen (+1.05%) at 70,683.98, its first close above 70,000 in about three months, since July 1. The TOPIX also rose 38.34 points (+0.92%) to 4,183.56. After the Nasdaq Composite hit a record high for the first time in about two weeks and Nvidia also closed at a record in the previous U.S. session, buying concentrated in semiconductor equipment and electronic component stocks. By contribution, Advantest lifted the index by about 334 yen and TDK by about 92 yen, while SoftBank Group dragged it down by about 163 yen. By sector, nonferrous metals, precision instruments, and banks rose, while information and communications, construction, and air transportation fell. Turnover on the TSE Prime Market was about 7.3048 trillion yen. Japan's long-term interest rate rose to 3.105%. In Tokyo forex trading, the dollar stood at 158.14 yen as of 4 p.m.

On October 5, the Nikkei 225 rebounded sharply for the first time in three sessions, closing up 1,637.40 yen (+2.40%) from the previous Friday at 69,946.86, and briefly regained the 70,000 level during the session. The TOPIX also rose 54.22 points (+1.33%) to a record high of 4,145.22. The previous week's U.S. jobs report showed a slowdown in hiring, raising expectations that the Federal Reserve will hold policy steady at its next meeting, and the Group of Seven's decision to release emergency reserves of crude oil and diesel fuel further boosted risk appetite. By contribution, Advantest lifted the index by about 360 yen and Tokyo Electron by about 336 yen. By sector, electrical appliances, glass and ceramics products, and chemicals rose, while electric power and gas, mining, and marine transportation fell. Turnover on the TSE Prime Market was 7.7509 trillion yen. In Tokyo forex trading, the dollar rose as high as 158.17 yen at one point.

On October 2, the Nikkei 225 fell back, closing down 647.26 yen (-0.94%) at 68,309.46. The TOPIX also dropped 40.98 points (-0.99%) to 4,091.00. After a gain of about 3,500 yen over the previous two days, short-term profit-taking dominated. Persistently high domestic long-term interest rates and higher crude oil prices amid tensions over Iran also weighed on the market. By contribution, SoftBank Group dragged the index down by about 316 yen and Tokyo Electron by about 243 yen, while Advantest lifted it by about 220 yen. By sector, nonferrous metals and mining rose, while securities, real estate, and other financial services fell. Turnover on the TSE Prime Market was 8.2978 trillion yen. The consumer price index for Tokyo's 23 wards in September (excluding fresh food) rose 2.7% from a year earlier. In Tokyo forex trading, the dollar fell to 157.47 yen toward the evening.

On October 1, the Nikkei 225 extended its gains sharply, closing up 2,203.00 yen (+3.30%) at 68,956.72. The TOPIX rose 23.33 points (+0.57%) to 4,131.98. In addition to strong earnings from Micron Technology of the U.S., a subdued U.S. core PCE price index eased concerns about an additional rate hike this year, and semiconductor-related stocks were bought. By contribution, Advantest lifted the index by about 723 yen, Tokyo Electron by about 387 yen, and SoftBank Group by about 219 yen. On the other hand, among Nikkei 225 constituents, 108 advanced and 115 declined. By sector, electrical appliances rose, while banks and insurance fell. Turnover on the TSE Prime Market was 8.7228 trillion yen. In the Bank of Japan's Tankan survey for September, the business conditions index for large manufacturers came in at +24, the highest level in about eight and a half years. In Tokyo forex trading, the dollar stood at 158.38 yen as of 3 p.m.