U.S. technology strength carries into Tokyo
Japanese stocks rebounded sharply on October 5. IwaiCosmo Securities reported a Nikkei 225 close of 69,946.86, up 1,637.40 points or 2.40%. TOPIX gained 54.22 points to 4,145.22, a 1.33% advance. The roughly 1.07-percentage-point gap between the indexes points to especially strong buying in stocks with a large influence on the Nikkei, alongside support for the broader market.
The catalyst was strength in U.S. technology shares. The September U.S. employment report showed payroll growth of 29,000 and monthly wage growth of 0.1%. Less heat in hiring and pay eased concerns about tighter monetary policy. That backdrop supported growth stocks, with the U.S. semiconductor rally carrying into Japanese chip and AI-related shares. A rebuilding of growth-stock positions offers the clearest explanation for the force of the early advance.
The morning surge and afternoon breadth tell different stories
The Nikkei chart starts well above its previous-close baseline and then climbs further during the morning. The opening gap represents news accumulated while Tokyo was closed being priced in at the start of trading. The subsequent climb shows additional buying during the Japanese session. The index pulled back from its morning high in the afternoon, then recovered and finished near the top of its daily range. Profit-taking around the 70,000 milestone interrupted the advance without breaking it.
TOPIX, by contrast, turns upward late in the afternoon. Comparing the morning close with the final close, the Nikkei fell 90.75 points from 70,037.61, while TOPIX rose 6.65 points from 4,138.57. Calling the afternoon a simple loss of momentum would miss that divergence. As the initial surge in high-priced Nikkei constituents cooled, buying remained visible across the broader TOPIX universe. The Nikkei led the morning; TOPIX added resilience later. Together, those patterns show more depth than the headline Nikkei gain alone.
USD/JPY recovers from its morning dip
Kabutan’s Tokyo currency report placed USD/JPY in the 157.70s at 9 a.m., the 157.40s shortly after 10:20 a.m., and the 158.10s shortly after 1:20 p.m. The rebound was roughly 0.4%. Elevated U.S. yields offer the strongest explanation for renewed dollar buying on dips. Technology-led equity demand and the earnings support exporters receive from a weaker yen are distinct forces. Comparing equities with USD/JPY helps separate the original stock-market catalyst from the additional support that emerged later.
The currency chart covers 24 trading hours and removes the weekend gap. Its sharp decline on the left should not be mistaken for a Monday-morning move. Friday’s U.S. employment report was released at 9:30 p.m. Japan time; the displayed window includes the ensuing dollar selling and recovery. Monday’s moves are best read alongside the Tokyo timestamps above. Separating the Nikkei’s morning surge, TOPIX’s afternoon recovery and the currency rebound reveals how the session developed rather than reducing it to a single description of a broad rally.
Major Index Closes
- Nikkei 22569,946.86 ＋2.40%
- TOPIX4,145.22 ＋1.33%
