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Nikkei 225 jumps above 70,000 to a three-month high as AI stocks rally
Photo: Analytics Insight

Nikkei Jumps 2.4% to 3-Month High as AI Chip Stocks Rally

The Standard (Reuters)2 min read5 sources

Why is the Nikkei up today?

Japan's Nikkei 225 (^N225) rose 2.4% to 69,947 on Monday, a three-month closing high, as weak US jobs data cut Fed rate-hike odds and lifted AI chip stocks.

Key numbers

Nikkei 225 close69,947+2.4% on the day
Nikkei midday level70,037.61+2.53%
Tokyo Electron+5.5%one-day move (per [4])
Advantest+4.3%one-day move (per [4])
Fed October hike odds16%from 64% a week earlier (per [3])
US September jobs added29,000unemployment 4.2%, up from 4.1% (per [3])

What happened

Japan's Nikkei 225 (^N225) rose 2.4% to 69,947 on Monday, a three-month closing high, as weak US jobs data cut Fed rate-hike odds and lifted AI chip stocks. The index briefly climbed above 70,000 during the session, up 2.5% at midday. Chip-equipment maker Tokyo Electron gained 5.5% and chip-testing firm Advantest gained 4.3%. On Friday, US employers added only 29,000 jobs, so traders now see just a 16% chance the Fed raises rates in October, down from 64% a week earlier (per).

Why it matters

The Nikkei 225, Japan's best-known stock index, shows investors are still buying companies that supply AI chips. Softer US job numbers lowered the chance of higher interest rates (borrowing costs), which tends to help tech shares. The rally is more cautious than earlier this year, when the index hit a record, and one analyst expects investors to be pickier from here.

Who this affects

Marketbullish
Medium impact
Japanese stock investors gain as chip shares lead index higher.
Companybullish
Medium impact
Tokyo Electron and Advantest shareholders gain after sharp one-day jumps.
Competitorsmixed
Low impact
Laggards like Kioxia gained little, trailing other chip names.
Industrybullish
Medium impact
Japan's chip-equipment makers see renewed AI-driven investor demand.

Nikkei 225 vs Topix, S&P 500, Nasdaq Composite

Nikkei 225^N22569,947+2.4%Mon 5 Oct
TopixTOPIX4,145+1.33%Mon 5 Oct
S&P 500^GSPC—+0.7%Fri 2 Oct
Nasdaq Composite^IXIC—+1.2%Fri 2 Oct

As of 2026-10-05

How we got here

  1. US reports 29,000 September jobs; Fed October hike odds fall to 16% from 64%.

  2. Wall Street rallies: S&P 500 up 0.7%, Nasdaq up 1.2%, Nvidia touches intraday record.

  3. Nikkei rises above 70,000 at midday, up 2.53%, its highest level since early July.

  4. Nikkei closes up 2.4% at 69,947, its highest close in about three months.

What to watch

  • Whether the Nikkei can close above 70,000 for the first time since early July.2026-10-06
  • Whether gains spread beyond chip names; 42% of Tokyo prime-market stocks fell at midday Monday.2026-10-06
  • The Fed's October decision, after rate-hike odds fell to 16% (per).Q4 2026

Educational content only. Not investment advice.

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