Nikkei Breaks 70,000 at Lunch as Advantest Leads a 2.53% Surge

01Market Snapshot

October 5 cash equities are still trading. The Nikkei figure is the confirmed 11:30 first-half close. The latest freely verifiable TOPIX print found before noon was 11:03, so it is labeled intraday.

Mood: Tokyo is sharply higher after weaker U.S. payroll growth reduced expectations for another near-term Fed hike, but the Nikkei’s 2.53% rise is amplified by high-weight semiconductor and technology names.

02What Moved Tokyo

The dominant input was the U.S. September jobs report. Payroll growth came in far below expectations, reducing the probability of another Fed hike in October. U.S. technology stocks rallied Friday and Tokyo followed through into AI and semiconductor names.

The Nikkei opened 804 points higher and finished the first half at 70,037.61, up 1,728.15 points or 2.53%. Prime Market breadth was positive but much less spectacular: 834 stocks rose, 657 fell and 55 were unchanged.

G7 plans for emergency petroleum-product releases also eased some oil-price anxiety. But Japan’s 10-year yield remained around 3.095%, so the rates constraint has not disappeared.

03Today’s Market Mover

Advantest (6857)

At an 11:08 public quote Advantest traded at ¥40,430, up ¥1,800 or 4.66%. At the morning close it was the largest positive Nikkei contributor, adding about 375.40 points. Tokyo Electron added another 348.90 points.

This was primarily the Japanese expression of a renewed global AI-chip bid. Confidence: High.

04Sector Pulse

Electrical equipment, machinery and chemicals led, with Advantest, Tokyo Electron, TDK and Murata among notable gainers. SoftBank Group was about 3.8% higher in an 11:08 public quote. Mining, oil and coal, and utilities lagged relatively.

05Yen Watch

USD/JPY was around ¥157.60 at 11:00, almost unchanged from late Friday in Tokyo. The dollar had slipped into the high ¥156s after the U.S. jobs report before recovering with Treasury yields. Today’s rally is therefore not simply a weak-yen trade.

06Rates / JGB Watch

The 10-year JGB yield was around 3.095% in a public morning quote. Even after a small decline, 3% yields materially change equity valuation: banks and insurers may benefit, while leveraged real estate and long-duration growth stocks face a higher hurdle rate.

07Global Handoff

For this noon edition, the handoff runs from Friday’s overseas session into Monday’s Tokyo morning. The Dow closed 250.40 points higher at 51,176.96 and the Nasdaq Composite gained 319.26 points to 27,190.86. Reuters described a broader risk-on start to the week as softer U.S. jobs data cooled rate-hike expectations.

08Policy / BOJ Watch

The BOJ remains focused on inflation risks after its September tightening. July meeting minutes showed several policymakers arguing for continued normalization. Meanwhile, Japan’s September services PMI showed activity growth slowing from a five-month high, and the 2:00 p.m. consumer-confidence release adds another domestic-demand check.

09Publisher’s Market Note

Advantest, Tokyo Electron, Fast Retailing, SoftBank Group and TDK did an extraordinary amount of the work. Japan’s market is strong, but it is not uniformly strong.

10Before the Next Open

• Can 70,000 survive the afternoon?
• Does buying spread beyond AI and semiconductor heavyweights?
• 2:00 p.m. consumer confidence
• 11:00 p.m. U.S. ISM services
• October 6 JGB auction and BOJ Governor Ueda remarks