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Japan's Nikkei rose to about 70,340 as Asian shares tracked Wall Street's tech rally, while oil near $100 and 5.3% Treasury yields capped broader gains.
- The Nikkei 225 traded near 70,340 on Tuesday and closed above 70,500, a three-month high led by chip and AI shares.
- The Nasdaq closed at a record 27,477.31 on Monday, up 1.05%, after weak U.S. jobs data cut bets on a Fed rate hike.
- The 10-year Treasury yield touched 5.35%, its highest since 2002, and Brent crude held near $100 a barrel.
Lead
Japan's Nikkei 225 climbed to about 70,340 on Tuesday, 6 October 2026, as Asian shares followed a technology-led rally on Wall Street. The index closed above 70,500, its highest level in roughly three months. In the stock market today, gains are concentrated in AI and semiconductor names, while elevated energy prices and bond yields keep a ceiling on broader advances.
What Moved the Stock Market Today in Asia?
Asian equities rose because Wall Street's overnight rally, driven by megacap technology, gave regional investors a clear lead. The MSCI Asia-Pacific index excluding Japan gained about 0.2%. The broader Topix index added roughly 0.9% to about 4,184.
In Japan, gains came mainly from chip-equipment makers, electronic-component producers and optical-fibre suppliers tied to AI data-center demand. Several of those stocks rose between 4% and 7% on the session.
On Wall Street on Monday, the Nasdaq Composite gained 286.45 points, or 1.05%, to a record close of 27,477.31. The S&P 500 rose 0.66% to 7,773.95, and the Dow Jones Industrial Average added 0.18% to 51,267.90. That was the Nasdaq's second straight session of sharp gains. Funds tracking the index, including the Invesco QQQ Trust (QQQ), benefited from the move.
Nvidia (NVDA) rose about 2.1% to a record closing high, lifting its market value to roughly $5.76 trillion. Microsoft (MSFT) gained about 1.5% and Meta Platforms (META) rose about 1.9%.Why Did the Fed Outlook Shift?
The Fed outlook shifted because September U.S. payrolls came in far below forecasts. Employment rose by about 29,000 against an expected gain of roughly 90,000, and unemployment stood at 4.2%. Futures markets now price about a 78% chance that the federal reserve holds rates at its October meeting, with the odds of a hike fading.
Softer hiring eased fears that policy would need to tighten further. That helped growth stocks, whose future earnings are more sensitive to borrowing costs.
Why Are Oil and Bond Yields Still Limiting Gains?
Oil and bond yields still limit gains because both stay near levels that squeeze corporate margins and valuations. Brent crude was little changed near $100 a barrel after falling 1.9% on Monday. Higher Middle East exports and a Group of Seven pledge to raise supply drove that decline. The price is still a heavy cost for energy-importing economies such as Japan.
The 10-year Treasury yield rose about 3 basis points on Monday to 5.3493%, the highest since 2002, before easing to about 5.31% in Asian trade. The 30-year yield briefly reached 5.70% and was near 5.66%. A basis point is one hundredth of a percentage point. Yields at these levels raise the discount rate applied to equities and compete with stocks for investor capital.
Japan's Policy Backdrop
Japanese equities also trade against a domestic policy backdrop. Prime Minister Sanae Takaichi continues to pursue expansionary fiscal measures, even as the yen stays weak and domestic bond yields rise. A weak yen lifts the yen value of exporters' overseas earnings, which supports the Nikkei, but it raises import costs. The Bank of Japan's October policy decision is the next major domestic event for the market.
What Comes Next for Markets?
The next test is the start of third-quarter earnings season in the United States, which will show whether AI-related spending is translating into profits at the scale implied by current valuations. Chipmakers and cloud providers are the focus, given how much of the recent rally rests on them.
Inflation-sensitive data and Treasury auctions will also bear on yields. If long-dated yields push decisively above recent highs, they could challenge equity valuations even with a steady Fed. A sustained fall in oil toward lower levels would ease pressure on Japan and the rest of import-dependent Asia.
Outlook
The Nikkei's move toward 70,340 and its close above 70,500 reflect investor confidence in AI-driven earnings and relief that the Fed is less likely to raise rates this month. The rally remains narrow. Brent near $100 and a 10-year yield above 5.3% continue to hold back broader gains in Asia and globally. Earnings from U.S. technology leaders and the Bank of Japan's October decision are the next catalysts.
Mentioned tickers: NVDA, MSFT, META, QQQ
