Nikkei Hits Five-Day High on Semiconductor and Financial Buying

Japan's Nikkei Stock Average rose for a fifth consecutive session on October 25th, closing at 66,318.14 yen, up 804.15 yen (1.23%) from the previous trading day.

The gain surpassed the psychologically significant 66,000 level and was led by semiconductor and financial names, including Tokyo Electron and Advantest, which rose due to their contribution to the Nikkei average.

Major semiconductor equipment makers drove the market higher, while banks and securities firms also attracted buying on expectations of earnings growth through improved lending margins.

Maki Sawada from Nomura Securities noted that the decline in WTI crude oil futures was well received, signaling an easing of elevated oil prices. She added that the approaching interim fiscal period-end would likely lead to dividend-targeted buying and that Japanese stocks' price-to-earnings ratio sits at the lower end of its 16-18 times range over the past two to three years.