Japan Markets Highlights — Oct 4, 2026 | Aivina
October 4, 2026
Japanese equities started October on a strong note, with the Nikkei 225 reaching multi-week highs driven by semiconductor gains and yen weakness near 158 against the dollar. While Tokyo core CPI accelerated to 2.7%, fading expectations for an immediate October BOJ rate hike provided temporary relief to equity valuations. Overall market dynamics remain supported by strong exporter sentiment and accommodative financial conditions despite ongoing BOJ normalization plans.
Highlights
- Nikkei 225 surged above 68,900 points led by semiconductor stock rallies
- USD/JPY moved near 158 as October BOJ rate hike expectations softened
- Japanese equities took brief profits to 68,309, securing a 2.9% weekly advance
Macro Overview
Inflation
Tokyo core CPI accelerated to 2.7% YoY in September, driven by rising energy costs and exceeding the BOJ's 2% target.
Interest Rate Outlook
Following September's rate hike to 1.25%, the BOJ maintains a hawkish bias, though markets expect a pause at the October meeting.
Risk Sentiment
bullish
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