Nikkei 225 surges above 70,000 on AI-driven rally

The Nikkei 225 closed at 70,683.98 points on October 6, marking a 1.05% gain and surpassing the 70,000 milestone for the first time since July 1. The rally was driven by strong performances in artificial intelligence and semiconductor shares, alongside positive sentiment from overnight gains on Wall Street and lower oil prices.

A successful Japanese government bond auction further eased debt-market concerns. The Ministry of Finance sold 10-year bonds with an average yield of 3.101%, and the bid-to-cover ratio of 3.76 exceeded the previous auction's 3.29, indicating robust demand.

Leading technology stocks like Advantest and Fujikura saw gains of 3.9% and over 5% respectively, supported by growing demand for AI infrastructure. Real estate, banking, and textile sectors also contributed to the broader TOPIX index's 0.92% rise to 4,183.56 points.

Bank of Japan Governor Kazuo Ueda reassured markets that underlying inflation remains near the 2% target, keeping focus on the upcoming policy meeting on October 29-30. The dollar traded near 158.07 yen, while key economic reports, including the August Monthly Labour Survey and business conditions index, are scheduled for October 7.