TOKYO –
Tokyo shares prolonged their restoration on Thursday, October 29, with the Nikkei 225 closing at 64,659.47 factors at 3:30 p.m., up 705.28 factors, or 1.10%, from the earlier session, as renewed shopping for of semiconductor and synthetic intelligence-related shares helped the benchmark file its third consecutive each day acquire forward of the Bank of Japan’s financial coverage determination.
The broader TOPIX index rose 11.57 factors, or 0.29%, to 4,003.28, reflecting a extra modest advance throughout the broader market. Trading was risky, with the Nikkei opening at 64,126.25, slipping to an intraday low of 63,749.20 round noon earlier than recovering sharply to achieve 64,831.29 in afternoon buying and selling.
The three-day rally lifted the Nikkei by almost 2,470 factors from its October 26 shut of 62,189.65, though the benchmark remained beneath the degrees recorded earlier in October. The restoration adopted a interval of heavy promoting that had pushed the index down from above 70,000 factors firstly of the month.
Investor sentiment acquired assist from Wall Street after the US Federal Reserve left its benchmark rate of interest unchanged at 3.75% to 4.00%. US shares ended October 28 greater, with the Dow Jones Industrial Average gaining 97.53 factors to 52,475.10, whereas the S&P 500 and Nasdaq Composite additionally superior.
Japanese expertise shares attracted renewed curiosity as buyers evaluated company earnings and the outlook for spending on AI infrastructure. Semiconductor testing tools maker Advantest rose 6.01% to 37,030 yen, making it one of many strongest performers amongst main Nikkei constituents. Furukawa Electric superior 4.75% to three,065 yen, reflecting shopping for curiosity in firms linked to electrical infrastructure and expertise funding.
However, the rally was removed from uniform. Hitachi fell 9.77% to five,071 yen, whereas building equipment producer Komatsu dropped 7.56% to six,300 yen and NEC declined 6.39% to 4,954 yen. The contrasting performances highlighted buyers’ more and more selective method to Japanese equities in the course of the company earnings season.
Of the Nikkei’s 225 constituent shares, 132 superior, 92 declined and one completed unchanged. The comparatively slender margin between gainers and losers prompt that a lot of the benchmark’s energy got here from a smaller group of closely weighted shares relatively than a broad enchancment in market sentiment.
Trading exercise was unusually heavy, with turnover on the Tokyo Stock Exchange’s Prime Market reaching roughly 13.87 trillion yen. Market members attributed a part of the rise to portfolio changes related to adjustments in TOPIX weightings, alongside common institutional buying and selling and earnings-related transactions.
The yen remained comparatively secure towards the dollar as buyers awaited the Bank of Japan’s newest coverage announcement. At 5 p.m. on October 29, the Japanese forex stood at 157.82 to 157.83 per dollar, 4 sen weaker than the day past. Against the euro, the yen traded at roughly 175.87 to 175.91, down 38 sen.
The dollar briefly strengthened past 158 yen throughout morning buying and selling earlier than retreating as actions in US Treasury yields influenced forex markets. The comparatively restricted fluctuations prompt that buyers had been reluctant to determine giant new positions earlier than the Bank of Japan’s October 30 determination.
The central financial institution started its two-day financial coverage assembly on October 29, with buyers broadly anticipating it to depart rates of interest unchanged. Attention was shifting towards the financial institution’s newest evaluation of inflation, financial progress and the timing of any extra financial tightening.
The Bank of Japan was scheduled to publish its coverage determination and quarterly financial outlook on October 30, adopted by a news convention at 3:30 p.m. Markets had been notably centered on whether or not policymakers would sign additional rate of interest will increase earlier than the tip of the yr, with the yen’s weak spot and chronic value pressures remaining essential concerns.
Corporate earnings supplied one other main focus for buyers, with roughly 130 listed firms scheduled to report outcomes on October 29.
Semiconductor producer Renesas Electronics reported income of roughly 1.235 trillion yen for the primary 9 months of 2026, a rise of 27.3% from the earlier yr. The firm posted a web revenue of roughly 589.5 billion yen, reversing a lack of 69.1 billion yen in the course of the corresponding interval of 2025. Its working revenue additionally rose sharply, though the dimensions of the rise in reported earnings mirrored accounting components in addition to enterprise efficiency.
For the July-September quarter, Renesas reported income of roughly 435.9 billion yen beneath International Financial Reporting Standards. Its adjusted working revenue reached 150.5 billion yen, equal to an working margin of 34.6%, underscoring the semiconductor business’s restoration from earlier weak spot.
Ibiden, a producer of semiconductor packaging substrates, additionally delivered stronger earnings. Its recurring revenue for the April-September interval surged 88.9% from a yr earlier to 61 billion yen, prompting the corporate to lift its full-year revenue forecast by 5.9%, from 127 billion yen to 134.5 billion yen. The revised outlook would characterize a file annual revenue for the corporate, highlighting continued funding in superior computing infrastructure and semiconductor parts.
Komatsu, one in all Japan’s largest building and mining tools producers, reported first-half income of roughly 2.159 trillion yen, up 14.1% from the earlier yr. Sales benefited from greater tools volumes, improved promoting costs and the weaker yen, which elevated the worth of abroad earnings when transformed into Japanese forex.
Despite a pointy decline in its share value in the course of the session, Komatsu raised its full-year pretax revenue forecast from 508 billion yen to 548 billion yen, a rise of seven.9%. The firm now expects pretax revenue to rise roughly 2% from the earlier fiscal yr, reversing its earlier forecast for a decline. Operating margins however remained beneath stress from rising prices, illustrating the challenges going through producers regardless of greater gross sales.
In the vitality sector, Tokyo Electric Power Holdings reported a steep decline in recurring earnings for the six months by means of September. Recurring revenue fell 67.9% from a yr earlier to roughly 90.6 billion yen, whereas income elevated 3.8% to three.271 trillion yen.
The utility recorded an working lack of roughly 33.7 billion yen, in contrast with an working revenue within the earlier yr, demonstrating the stress on profitability regardless of greater income. Net revenue returned to constructive territory at roughly 52.7 billion yen, in contrast with a considerable loss a yr earlier.
The contrasting earnings studies illustrated the uneven efficiency of Japan’s company sector. Semiconductor and technology-related producers continued to profit from funding in superior computing and abroad demand, whereas vitality firms and different industrial companies confronted stress from working prices and profitability issues.
The newest company outcomes additionally highlighted the sophisticated function of the yen in Japan’s economic system. A weaker forex boosts the yen-denominated earnings of exporters and multinational producers, however will increase the price of imported gasoline, uncooked supplies and meals, putting stress on home companies and family buying energy.
For buyers, the instant focus was turning to October 30, when a number of main financial indicators had been scheduled for launch alongside the Bank of Japan’s coverage announcement. These included Tokyo’s October client value index, September unemployment figures, industrial manufacturing and retail gross sales knowledge.
The figures had been anticipated to supply a contemporary evaluation of inflationary stress, client spending and manufacturing exercise at a time when the Japanese economic system was balancing rising company funding towards greater residing prices and uncertainty over international commerce.
Although the Nikkei’s restoration over three consecutive classes prompt that purchasing curiosity had returned following October’s sharp market correction, the numerous distinction between the Nikkei and TOPIX positive aspects confirmed that confidence remained concentrated in chosen industries.
The Bank of Japan’s coverage outlook, the route of the yen and additional company earnings bulletins had been anticipated to find out whether or not the restoration in Japanese equities may proceed into the ultimate buying and selling session of October and the start of November.