Japan Market Daily

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.