Why it matters
- Japan's Nikkei 225 closed at 70,683.98 on Tuesday, Oct. 6, up 1.05%, its first close above 70,000 since July 1 and about 40% above where it ended 2025.
- The index is still about 2.3% below its record close of 72,366.34 from June 25, according to Yahoo Finance data.
- The yen stayed weak near 158 per dollar, and Bank of Japan Governor Kazuo Ueda signaled readiness to keep raising rates before the Oct. 29–30 policy meeting.
Analysis: this piece includes our interpretation of the facts reported.
Japan's Nikkei 225 stock index closed at 70,683.98 on Tuesday, Oct. 6, up 737.12 points, or 1.05%, its first close above 70,000 since July 1 and its highest since June 25, according to International Business Times and Yahoo Finance data. The gain followed a 2.4% jump on Monday and came as the yen held near 158 per dollar.
Why is the Nikkei rising?
Two straight days of gains came from outside Japan. Weaker-than-expected U.S. jobs data for September led investors to pare bets on another Federal Reserve rate hike, Nikkei Asia reported. Wall Street gains and cheaper oil also lifted Tokyo shares, International Business Times said.
Technology and AI-related shares led. Taiyo Yuden rose about 6.2% and Fujikura 5.2%, according to Trading Economics. Because the Nikkei is weighted by share price, a few high-priced chip and electronics stocks can move it sharply, as our report on Micron's outlook lifting chipmakers showed last week.
Cheaper energy matters for Japan, which imports most of its fuel. Brent crude futures traded near $97.58 a barrel at about 12:40 GMT Tuesday, down about 2.7% from Monday's settlement of $100.32, according to Yahoo Finance data.
Japan's markets in numbers
| Measure | Latest | Comparison |
|---|---|---|
| Nikkei 225, Oct. 6 close | 70,683.98 | +1.05% on the day |
| Nikkei 225, Oct. 5 close | 69,946.86 | +2.4% on the day |
| Nikkei 225 record close (June 25) | 72,366.34 | Tuesday's close is 2.3% below |
| Nikkei 225 record intraday high (June 22) | 72,831.73 | — |
| Nikkei 225, Dec. 30, 2025 close | 50,339.48 | Up 40.4% since |
| USD/JPY, about 12:50 GMT Oct. 6 | 158.08 | 156.41 at end of 2025 |
| Japan 10-year government bond yield | 3.11% | Near a three-decade high |
| Bank of Japan policy rate | 1.25% | Raised Sept. 18 |
Sources: Yahoo Finance chart data for the Nikkei 225 and USD/JPY; International Business Times for the Oct. 5 and Oct. 6 closes; Trading Economics for the bond yield.
Why is the yen still weak?
The yen remains weak even after the Bank of Japan raised rates to 1.25% in September, because rates elsewhere are higher. The dollar bought about 158.08 yen on Tuesday afternoon in Europe, up from about 156.41 at the end of 2025, according to Yahoo Finance data. A weaker yen raises the value of overseas earnings for Japan's big exporters, which helps their shares, but it also pushes up import prices.
Japan's 10-year government bond yield was 3.11% on Tuesday, close to its highest level in three decades, according to Trading Economics. It tied the rise to Prime Minister Sanae Takaichi's fiscal expansion plans and proposed tax cuts. Tokyo's core inflation rate was 2.7% in September, above the central bank's 2% target, Trading Economics said.
Will the Bank of Japan raise rates in October?
Markets see it as possible but not likely. One estimate puts the odds of an October hike at roughly one in four, according to InvestingLive. The Bank of Japan's next policy meeting is Oct. 29–30, according to its schedule.
In a speech on Tuesday, Governor Kazuo Ueda said, "It has become more important than before to ensure underlying inflation becomes anchored around 2%," Reuters reported via Investing.com. Reuters said he cited the weak yen, AI-related demand and higher raw material costs as price pressures, signaling readiness to keep raising rates.
For how Japan's September hike fits the global trend, see our guide to September's central bank decisions. Follow the Nikkei and the yen on our world markets page, and upcoming meetings on the economic calendar.
Sources
- Yahoo Finance, Nikkei 225 (^N225) chart data
- Yahoo Finance, USD/JPY (JPY=X) chart data
- Yahoo Finance, Brent crude futures (BZ=F) chart data
- International Business Times, Nikkei Tops 70,000 at Close, Hits Three-Month High as Wall Street Rally and Cheaper Oil Lift Tokyo Stocks
- Nikkei Asia, Japan's Nikkei average briefly regains 70,000 mark as AI optimism returns
- Trading Economics, Japan stock market (Nikkei 225)
- Trading Economics, Japan 10-year government bond yield
- Reuters via Investing.com, BOJ chief calls for more focus on anchoring inflation around target
- InvestingLive, BoJ's Ueda in focus as markets weigh a back-to-back October rate hike
- Bank of Japan, Monetary Policy Meetings schedule