Japanese Stocks Touch Major Threshold as Artificial Intelligence Rally Resumes
Tokyo, Monday, 5 October 2026.
On October 5, 2026, Tokyo’s Nikkei index briefly crossed the 70,000 mark for the first time in three months, powered by renewed investor optimism in AI equities.
Nikkei 225 Reclaims 70,000 Milestone Amid AI Surge
On Monday, 5 October 2026, Japan’s benchmark Nikkei Stock Average briefly crossed the 70,000 threshold during intraday trading for the first time in three months [1][2]. The index closed at 69,946 yen, marking a significant recovery driven by renewed investor optimism in artificial intelligence equities [2]. This surge represents a 2.396 gain from the previous session, fueled by strong earnings outlooks from key industry players signaling sustained global demand for AI infrastructure [1][2].
US Economic Data Influences Market Sentiment
The rally was partly catalyzed by the September U.S. jobs report, which showed slower-than-expected growth, prompting investors to pare back bets on a Federal Reserve rate hike [1]. Market data indicates that nonfarm payrolls increased by 29,000 in September, with the unemployment rate holding at 4.2% [3]. This economic slowdown has reduced expectations for additional interest rate hikes, providing relief to growth stocks and technology sectors reliant on lower borrowing costs [3][4].
Semiconductor and Tech Stocks Lead Gains
Semiconductor-related stocks played a pivotal role, with the SOX index rising 2.40% to 13,136.7 points [3]. Advantest Corporation was noted as a key driver pulling the market upward, alongside gains in content and IT sectors [2][5]. The broader market participation suggests a widening rally beyond just AI-specific stocks, although technology remains the primary engine of growth [2].
Corporate Valuations and NAV Impacts
Significant movements were observed in major conglomerates with tech exposure, such as SoftBank Group, whose estimated Net Asset Value (NAV) increased by approximately 2.1343 trillion yen due to Arm Holdings stock performance [3]. SoftBank Group had previously completed a 10 billion dollar investment in OpenAI on 1 October 2026, further tying its valuation to AI sector performance [3]. Analysts note that while long-term interest rates remain elevated around 5.27%, the equity market is currently prioritizing growth potential over yield concerns [3].