Nikkei Stocks Jump on Weak U.S. Jobs Data and Falling Oil Prices

The Nikkei Stock Average opened higher on Monday, October 5, climbing 804.28 points, or 1.18%, to reach 69,113.74. This rally followed the release of the U.S. Employment Report on Friday, which showed nonfarm payrolls grew by just 29,000 in September, far below expectations. The weaker-than-expected data led traders to reduce bets on near-term Federal Reserve rate hikes, boosting investor confidence.

The Nikkei extended its gains after the open, briefly surging around 1,300 points, or roughly 1.9%, to reclaim the 69,000 level for the first time in about a month and a half. The positive momentum was supported by a decision by G7 nations to release oil reserves, which pushed crude prices lower and further improved investor sentiment.

All three major U.S. equity indexes closed higher on Friday, with the Dow Jones Industrial Average gaining 250.40 points, the Nasdaq Composite rising 319.27 points, and the S&P 500 increasing 56.27 points. The softer jobs report and falling oil prices contributed to a broad-based rally in Tokyo, with sectors like electrical machinery, machinery, and glass and ceramics products leading the gains.

Among individual stocks, semiconductor-related companies such as Tokyo Electron and Advantest advanced, while SoftBank Group also saw buying interest. Fast Retailing and Kioxia Holdings showed resilience, and Toyota Motor held steady. In the foreign exchange market, the dollar-yen pair traded around 157.80 yen per dollar, slightly weaker for the yen.