Nikkei jumped 2.53% to 70,037.61 by mid‑morning, breaking the 70,000 barrier for the first time in three months. The rally was fuelled by a surge in chip‑makers, with Tokyo Electron up 5.7% and Advantest adding 4.5%.
The broader Topix climbed 1.16% to 4,138.57, while financial stocks gave a lift: Mizuho Financial Group rose 1.86% and Mitsubishi UFJ Financial Group edged 0.99%. SoftBank Group advanced 3.68%, yet memory‑maker Kioxia barely moved 0.49%, still trading 50% below its mid‑June peak.
Bond markets felt the pressure. The 30‑year government bond yield spiked to a record 4.235%, while the 10‑year slipped to 3.08% and the two‑year fell 1.5 basis points to 1.9%. Investors are keenly watching Prime Minister Sanae Takaichi’s policy speech for clues on fiscal policy and its impact on yields.
Market breadth remains uneven: out of 1,500 prime‑market stocks, 53% advanced, 42% fell and 3% stayed flat. The AI‑driven rally is selective, according to Resona Asset Management’s Mamoru Shimode, who warned that gains in memory stocks might be limited by profit‑taking.
On the global front, U.S. stocks edged higher after weak jobs data dampened expectations for another Fed rate hike. Traders will be watching the upcoming Takaichi address and the Fed’s next meeting for hints on interest‑rate policy and its ripple effects on Japanese equity and bond markets.