Japan Market Daily

On October 30, the Nikkei 225 fell sharply on the Tokyo stock market for the first time in four sessions, closing at 63,290.11, down 1,369.36 yen (2.12%) from the previous day. TOPIX also fell 38.21 points to 3,965.07. In the previous day's U.S. session, Amazon and Intel plunged in after-hours trading as their earnings fell short of market expectations, which led to heavy selling of AI and semiconductor-related stocks, and the Nikkei 225 fell more than 1,900 yen at one point. The Bank of Japan announced it would keep monetary policy unchanged, but the decision was as expected and had limited impact. Advantest, Tokyo Electron and SoftBank Group weighed on the index, while Ibiden and Fujitsu fell by their daily limits. On the other hand, Fast Retailing and Konami Group, which raised its earnings forecast, were bought, and nearly half of the stocks on the TSE Prime Market rose. By sector, air transportation and marine transportation rose, while non-ferrous metals and electrical equipment fell. Trading value on the TSE Prime Market was about 8.47 trillion yen.

On October 29, the Nikkei 225 extended its gains on the Tokyo stock market, closing at 64,659.47, up 705.28 yen (1.10%) from the previous day. TOPIX also rebounded, rising 11.57 points to 4,003.28. The market followed the previous day's U.S. session, where major indexes rose and chip stocks were bought after the FOMC held interest rates steady as expected. Advantest, which raised its full-year earnings forecast and announced a share buyback, rose sharply and led the index, while Tokyo Electron and SoftBank Group also gained. Gains stalled in the morning session due to weakness in Korean stocks and in electrical equipment and machinery shares, but buying in semiconductor-related stocks widened the rise in the afternoon. On the other hand, Fanuc and Hitachi fell, and decliners made up about 50% of stocks on the TSE Prime Market. By sector, non-ferrous metals, banks, and securities and commodity futures rose, while machinery and electrical equipment fell. Trading value on the TSE Prime Market was about 13.87 trillion yen.

On October 28, the Nikkei 225 rose for a second day on the Tokyo stock market, closing at 63,954.19, up 685.82 yen (+1.08%) from the previous day. The TOPIX, on the other hand, edged down 5.66 points to 3,991.71. Following gains in U.S. semiconductor stocks the previous day, buying concentrated in AI and semiconductor-related stocks, and the Nikkei rose more than 1,000 yen at one point in the afternoon session, recovering the 64,000 level. However, with the U.S. FOMC decision and earnings from major U.S. tech companies ahead, its gains narrowed toward the close. The rise was skewed toward a few high-priced stocks, and decliners accounted for 70% of the TSE Prime Market. By contribution, Advantest lifted the Nikkei by about 231 yen and Tokyo Electron by about 210 yen, followed by SoftBank Group and Kioxia, while Konami Group and Nitto Denko weighed on it. By sector, glass and ceramics products, nonferrous metals and electric appliances rose, while insurance, foods and oil and coal products fell. Trading value on the TSE Prime Market was 8.0742 trillion yen.

On October 27, the Nikkei 225 rebounded for the first time in four days on the Tokyo stock market, closing at 63,268.37, up 1,078.72 yen (+1.73%) from the previous day. The TOPIX also rose for a second day, gaining 24.39 points to 3,997.37. U.S. tech stocks rose the previous day after U.S. AI developer Anthropic disclosed its prospectus for an initial public offering, and AI and semiconductor-related stocks were bought in Tokyo as well. The Nikkei rose more than 1,400 yen at one point, but the gains were concentrated in a few high-priced stocks, and decliners outnumbered advancers on the TSE Prime Market. By contribution, Advantest alone lifted the Nikkei by about 602 yen, followed by SoftBank Group and Tokyo Electron, while Recruit Holdings and Daiichi Sankyo weighed on it. By sector, nonferrous metals, electric appliances and banks rose, while real estate, pharmaceuticals and land transportation fell. Trading value on the TSE Prime Market was approximately 6.936 trillion yen.

On October 26, the Nikkei 225 fell for a third straight day on the Tokyo stock market, closing at 62,189.65, down 503.51 yen (-0.80%) from the previous Friday. The TOPIX, on the other hand, rose 7.17 points to 3,972.98. In the U.S. market the previous Friday, the Dow fell 652 dollars as tensions in the Middle East pushed up oil prices and long-term interest rates rose, so selling dominated, centered on high-priced semiconductor-related stocks. Ahead of earnings from Japanese and U.S. tech companies, concerns about whether AI investment will pay off also led to profit-taking, and the index widened its losses toward the close. By contribution, Advantest pulled the Nikkei down by about 274 yen, Tokyo Electron by about 176 yen and Fast Retailing by about 154 yen, while Toyota Tsusho and Mitsubishi Corp. each lifted it by about 20 yen. By sector, mining, oil and coal products and wholesale trade rose, while nonferrous metals and electric appliances fell. Trading value on the TSE Prime Market was approximately 6.64 trillion yen.

On October 23, the Nikkei 225 fell for a second day on the Tokyo stock market, closing at 62,693.16, down 214.68 yen (-0.34%) from the previous day. The close was the lowest in about three months, since July 30. The TOPIX also fell 31.69 points to 3,965.81. In the U.S. market the previous day, earnings from Meta and Tesla revived concerns about whether AI investment will pay off, and the Nasdaq Composite fell sharply, so selling led the way, centered on semiconductor-related stocks. The Nikkei fell more than 1,400 yen at one point in the morning session and dropped below 62,000, but in the afternoon some semiconductor stocks attracted bargain buying and the index narrowed its losses. Higher oil prices due to the situation in the Middle East also weighed on the market. By contribution, TDK pulled the Nikkei down by about 79 yen, while Fast Retailing lifted it by about 95 yen. By sector, banks, marine transportation and nonferrous metals fell, while real estate and retail rose. Trading value on the TSE Prime Market was 8.9383 trillion yen.

On October 22, the Nikkei 225 fell sharply on the Tokyo stock market, closing at 62,907.84, down 1,713.40 yen (-2.65%) from the previous day. It was the first close below 63,000 in about three months, and the index ended at its low of the day. The TOPIX also fell 46.23 points to 3,997.50. Lam Research gave a wide outlook range with its earnings and its shares fell in after-hours trading, which spread selling to semiconductor equipment and materials stocks, and the market fell further in the afternoon session. By contribution, Advantest pulled the Nikkei down by about 447 yen, Tokyo Electron by about 359 yen and SoftBank Group by about 256 yen. Of the 33 sectors, 20 declined, led by nonferrous metals, glass and ceramics, and electric appliances, while mining and insurance rose. On the TSE Prime Market, 684 stocks rose and 821 fell, with trading value of 7.06 trillion yen. The dollar weakened against the yen to the low 157 range as of 4 p.m.

On October 21, the Nikkei 225 rebounded for the first time in three trading days, closing up 545.82 yen (+0.85%) from the previous day at 64,621.24. The TOPIX also rebounded, rising 34.52 points (+0.86%) to 4,043.73. Following gains in U.S. stocks the previous day and strong earnings from SpaceX in the U.S., short-covering spread to AI and semiconductor stocks, and September exports rising 16.7% year on year for a 13th straight monthly increase also provided support. The Nikkei rose to 65,404.63 at 9:29 a.m., with the gain exceeding 1,300 yen at one point, but buying did not continue in the 65,000 range ahead of earnings from U.S. tech companies, and the gain narrowed. Advantest and Kioxia Holdings rose; by sector, nonferrous metals, banks and insurance gained, while retail trade was weak. On the TSE Prime Market, 982 stocks rose and 521 fell, and turnover was 6.9265 trillion yen.

On October 20, the Nikkei 225 extended its decline, closing down 841.28 yen (-1.30%) from the previous day at 64,075.42. The TOPIX also fell 58.27 points to 4,009.21, its first decline in three trading days. Credit concerns over companies that fund AI investment with borrowing resurfaced, and rising long-term interest rates in Europe and the U.S. added to the pressure, leading to selling across a wide range of stocks including semiconductors and banks. In the afternoon, the index fell as low as 63,807.15, with the loss exceeding 1,100 yen at one point. By contribution, SoftBank Group, Tokyo Electron and Advantest dragged the index down, while Fast Retailing, which announced price increases, lifted it by about 122 yen. Twenty-four of the 33 sectors fell; nonferrous metals, banks and insurance declined, while other products, retail trade and pharmaceuticals rose. On the TSE Prime Market, 333 stocks rose and 1,177 fell, and turnover was 6.7992 trillion yen.

On October 19, the Nikkei 225 fell back, closing down 407.59 yen (-0.62%) from the previous week at 64,916.70. The TOPIX, by contrast, rose 1.48 points to 4,067.48, extending its gain slightly. After the Philadelphia Semiconductor Index fell sharply in the U.S. at the end of last week, and with higher oil prices and concerns over AI investment adding to the pressure, selling led by semiconductor stocks dominated early trading, and the index fell as low as 63,831.78. In the afternoon, buying in futures narrowed the losses. By contribution, five stocks including Tokyo Electron, Fast Retailing and SoftBank Group dragged the index down by about 418 yen, while five stocks including Recruit Holdings and Kioxia lifted it by about 94 yen. Twenty-one of the 33 sectors rose; mining, marine transportation, and oil and coal products gained on higher oil prices, while nonferrous metals and electric appliances fell. On the TSE Prime Market, 621 stocks rose and 873 fell, and turnover was 6.7835 trillion yen.

On October 16, the Nikkei 225 rebounded for the first time in seven sessions, closing up 898.34 yen (+1.39%) at 65,324.29. The TOPIX also rose 66.66 points (+1.67%) to 4,066.00, back above 4,000. After U.S. stocks rebounded and U.S. long-term interest rates fell, short-covering spread, led by semiconductor stocks, in reaction to the previous day's plunge. The index was up as much as 1,124 yen in the morning session, but concerns about AI investment lingered, and selling by investors waiting for a rebound narrowed the gains toward the close. By contribution, Tokyo Electron lifted the index by about 134 yen, while Fast Retailing dragged it down by about 66 yen. On the TSE Prime Market, 83.2% of stocks rose, and 32 sectors gained, with only electric power and gas falling. Turnover was 7.6686 trillion yen. In Tokyo forex trading, the dollar moved in the 157.90 yen range.

On October 15, the Nikkei 225 fell for a sixth straight session, closing down 3,318.34 yen (-4.90%) at 64,425.95. It was the third-largest point drop on record, and the index fell as low as 64,092.74 during the session, breaking below the 65,000 mark. The TOPIX also dropped 97.44 points (-2.38%) to 3,999.34, slipping below 4,000. After the U.S. September consumer price index came in above expectations and strengthened expectations of further rate hikes, the U.S. semiconductor index fell 4.30%, and selling concentrated in high-priced Japanese chip stocks. By contribution, Advantest fell about 15% and alone dragged the index down by about 1,303 yen. By sector, pharmaceuticals, real estate, and retail rose, while nonferrous metals and electrical appliances fell. Turnover on the TSE Prime Market swelled to 10.1401 trillion yen. In Tokyo forex trading, the dollar stood around 157.87 yen as of 5 p.m.

On October 14, the Nikkei 225 edged lower for a fifth straight session, closing down 33.23 yen at 67,744.29. The TOPIX also fell 13.89 points (-0.34%) to 4,096.78. After a drop of more than 2,900 yen over the previous four sessions, rebound buying led the open and the index started 164 yen higher, but it turned negative in the afternoon as Japanese semiconductor stocks were sold after Dutch chip equipment maker ASML reported earnings. The previous day's decline in U.S. semiconductor stocks and caution ahead of the U.S. September consumer price index also weighed on the market. By contribution, Tokyo Electron dragged the index down by about 159 yen, while Fast Retailing lifted it by about 165 yen. By sector, petroleum and coal products and nonferrous metals rose, while banks and precision instruments fell. Turnover on the TSE Prime Market was 7.4507 trillion yen. In Tokyo forex trading, the dollar stood around 158.34 yen as of 5 p.m.

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.