[Market Review for October 5] Nikkei Average briefly hits 70,000, up 1,637 yen | Next focus is on US interest rates and the weak Euro
[embedded content]
The Nikkei Average briefly exceeded 70,000 during trading hours. However, the closing price on October 5 was 69,946.86 yen. While the significant rebound is backed by receding expectations of US interest rate hikes, caution is required regarding the subsequent rebound in US long-term interest rates and the weak Euro.
We will review the Tokyo market on October 5, 2026, and the US market on October 2, and organize the factors that individual investors should check next.
Nikkei Average up 1,637 yen. 70,000 not reached at close
The Nikkei Average rebounded significantly, closing at 69,946.86 yen, up 1,637.40 yen (+2.40%) from the previous day. It opened at 69,113 yen, up 804 yen, and broke through 70,000 in the morning session. It stood at 70,037 yen at the midday break, but momentum slowed in the afternoon, and it failed to maintain the major milestone at the close.
-
Nikkei Average: 69,946.86 yen, +2.40%
-
TOPIX: 4,145.22, +1.33%
-
TSE Growth Market 250 Index: 812.24, +1.76%
-
TSE Prime: 863 stocks rose, 633 fell, 56 unchanged
-
Trading value: approx. 7.7509 trillion yen, Advance-Decline Ratio (25-day): 92.39%
-
Exchange rate at 15:00: Dollar-Yen 157.75-76 yen, Euro-Yen 176.47-51 yen
The number of advancing stocks exceeded declining ones by 230, showing a certain breadth in the rise. On the other hand, the Nikkei Average’s rise was larger than that of the TOPIX, suggesting that high-priced stocks had a strong influence. It is best to view the “briefly hitting 70,000” and “establishing it at the close” separately.
Buying in semiconductor stocks following US employment statistics
The starting point was the US market on October 2. The September US employment statistics fell below market expectations, causing concerns about additional interest rate hikes by the FRB to recede. The NY Dow was 51,176.96 (+0.49%), the S&P 500 was 7,722.72 (+0.73%), and the NASDAQ was 27,190.86 (+1.18%). All three major indices rose, and the strength of high-tech stocks was notable.
This trend spread to the Tokyo market, with Tokyo Electron (8035) at 12,765 yen, +5.49%. TDK (6762) also rose to 3,447 yen, +7.78%, supported by reports that its AI-related sales would exceed plans.
Funds also flow into retail and dining. Selection of individual materials continues
Outside of semiconductors, stocks with strong monthly sales were also bought. Fast Retailing (9983) saw September domestic Uniqlo existing-store sales rise by 11%, closing at 74,690 yen, +4.06%. F&LC (3563) saw domestic Sushiro existing-store sales rise by 6%, closing at 5,340 yen, +5.38%.
Additionally, IDEC (6652), which upwardly revised its full-year operating profit forecast, was at 4,060 yen, +6.28%. On the other hand, Infrone Holdings (5076), which announced a public offering and secondary offering, was at 2,330 yen, -13.55%. Shionogi & Co. (4507) was at 2,661 yen, -4.48%, as concerns over financial deterioration due to the acquisition of US-based IntraBio were noted.
Even if the index rises significantly, individual company fundraising, acquisitions, and performance evaluations are separate matters. It is important not to judge the stocks you hold based solely on the direction of the overall market.
Rebound in US long-term interest rates and euro weakness are the next points of caution
In the BigBoss Mail Magazine ‘Euro Hits New Lows,’ it is reported that after weak US employment statistics, US long-term interest rates, which had temporarily fallen to 5.16%, rebounded to around 5.30% and recovered to 5.31%. The decline in interest rates that supported the stock price rise is not necessarily continuing.
If the re-rise in interest rates continues, it could become a burden on semiconductor and growth stocks that incorporate future growth expectations. We want to check not only the results of the employment statistics but also the subsequent reaction of the bond market.
In the foreign exchange market, the euro-dollar fell to 1.1161 during Asian hours. The euro-yen fell from around 177.70 yen to a temporary low of 176.22 yen, and returned to around 177.40 yen during European hours, according to the email. These are values at different times and should be distinguished from the exchange rate at 3:00 PM in the Tokyo market.
The BigBoss author cites concerns about the French government bond market and large-scale weekend demonstrations as the background for the euro’s weakness. Also, while viewing the rise in US interest rates as a factor for a stronger dollar, the author anticipates a downward trend for the euro-yen, citing caution regarding intervention in the dollar-yen. The background explanations and future outlooks introduced here are the author’s market views and are not confirmed future predictions.
Three points individual investors should check next
-
Whether the Nikkei Average can close above 70,000. Do not judge it as established just by breaking through during trading hours.
-
Whether the spread of rising stocks will continue. Distinguish between concentration in semiconductors and rises due to individual factors such as monthly performance.
-
Whether US long-term interest rates and exchange rates have changed the premise of the stock price rise. In addition to the dollar-yen, check the euro-dollar and euro-yen.
The next focus materials at the time of the document are the US September ISM Non-Manufacturing Index and domestic earnings reports such as Kasumigaseki Capital and Ichibanya. The focus will be on how interest rates react after the announcement, not just the strength or weakness of the economic indicators.
Videos and Reference Materials
Short Video: Nikkei Average Temporarily Hits 70,000! Next Points of Caution are US Interest Rates and Euro Weakness
This article is based on the text of Monex Mail No. 6652 (October 5, 2026) and the BigBoss Mail Magazine ‘Euro Hits New Lows’ (distributed on the same day). Market data is as of the time of each document.
Distributor: Monex, Inc. / BigBoss. The links above are to the distributors’ official websites and are not the URLs of the email text itself.
The headline image is an illustration representing the market. This article is intended for information organization purposes and does not recommend the buying or selling of specific financial products.