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Japan’s Nikkei Tops 70,000 Intraday as AI Stocks Rally, Then Closes Below the Mark

The Nikkei crossed 70,000 during October 5 trading before closing below the mark at 69,946.4, still its highest close since July 1.
From TheFinanceBase Team3 min to read
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Japan’s Nikkei 225 crossed 70,000 during trading on October 5, 2026, reaching 70,037.61 at midday, but it ended the session at 69,946.4. The close was still the index’s highest since July 1, according to Reuters reporting. The surge was led by AI-related shares, while market commentary also pointed to gains on Wall Street and weaker-than-expected U.S. jobs data as supportive context.

What happened to the Nikkei on October 5?

The Nikkei 225 rose 2.53% to 70,037.61 by the midday break, its highest level since early July at that point, Reuters reported. It later gave up enough ground to finish at 69,946.4, up 2.4%. The index therefore moved above 70,000 intraday but did not close above it. Reuters described the closing level as the highest since July 1.

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The broader TOPIX also gained: it stood at 4,138.57, up 1.16%, at midday, then closed at 4,145.22, up 1.33%. The midday and closing readings are separate snapshots, not competing full-session figures. Reuters reported the midday figures through Business Recorder and closing figures through Business Recorder; Qatar News Agency also reported selected closing figures.

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Which shares drove the rally?

Reuters identified semiconductor-testing equipment maker Advantest and chipmaking equipment producer Tokyo Electron as the largest contributors to the Nikkei’s rise. Their reported gains differed by measurement time:

Company At midday At the close
Advantest Up 4.5% (Reuters, midday report) Up 4.32% (Reuters, closing report)
Tokyo Electron Up 5.7% (Reuters, midday report) Up 5.5% (Reuters, closing report)
SoftBank Group Up 3.68% (Reuters, midday report) Up 2.96% (Reuters, closing report)
Kioxia Up 0.49% (Reuters, midday report) Up 0.94% (Reuters, closing report)

The closing report also recorded gains among major banks: Mitsubishi UFJ Financial Group rose 2.0% and Mizuho Financial Group gained 2.63%. These are reported share-price changes for that session, not recommendations or a ranking of investments.

Why Kioxia rose less

Reuters’ closing report said Kioxia remained nearly 50% below a mid-June record high. Resona Asset Management chief strategist Mamoru Shimode suggested that some investors bought as the shares rose while holders with losses used the rally to sell, limiting the gain. That is an attributed explanation, not a confirmed account of every investor’s trading.

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What supported the move?

Reuters-linked reporting connected the advance in AI-related shares to gains on Wall Street at the end of the previous week. U.S. stocks had risen on Friday after weaker-than-expected jobs data reduced expectations of a Federal Reserve rate hike at its October policy meeting. Those developments were reported as market context that supported sentiment; they do not establish a single cause for Japan’s rally.

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Shimode said investors were buying AI-related stocks, but sentiment was more muted than earlier in the year, when the Nikkei reached a record high. He also said he expected the AI rally to continue while investors became more selective. The Times of India’s midday report also quoted Shimode.

Did the broader Japanese market rise too?

Yes. TOPIX closed up 1.33% at 4,145.22, a smaller percentage gain than the Nikkei’s 2.4% advance. The midday comparison was also different: TOPIX was up 1.16% at 4,138.57 while the Nikkei had gained 2.53% to 70,037.61. In its midday report, Reuters said TOPIX growth shares were up 1.46% and value shares 0.89%; at the close, it reported growth shares up 1.43% and value shares up 1.23%.

Market breadth was mixed despite the index gains. Reuters’ closing report said that among more than 1,500 stocks on the Tokyo Stock Exchange Prime Market, 55% rose, 40% fell and 3% were unchanged. These are the report’s rounded published percentages, which add to 98% rather than a complete 100% breakdown.

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What the 70,000 milestone means for readers

The headline-level takeaway is a distinction between an intraday threshold and a closing level: the Nikkei briefly traded above 70,000, but finished just below it. Its 69,946.4 close nevertheless marked a reported three-month closing high. The session also showed that a headline index gain does not mean every listed share rose, as the Prime Market’s published breadth figures indicate.

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All figures and market explanations here refer to the October 5, 2026 session and are attributed to contemporaneous news reports. They are not a live quote, independently verified official exchange records, or a signal about what the market will do next.

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