Nikkei 225 climbs 1.34% to 50,884 as buyers return and yen weakness supports sentiment

Nikkei 225 climbs 1.34% to 50,884 as buyers return and yen weakness supports sentiment
Nikkei 225 strengthens as buyers return, supported by yen softness and global equity rebound

​The Nikkei 225 jumped 1.34% on Thursday to close near 50,884, regaining strength after a volatile start to the week. The rebound followed Wall Street’s recovery, where easing valuation concerns in U.S. tech stocks revived global risk appetite. Optimism over trade stability and resilient U.S. data added to the positive tone.

Highlights

- Nikkei 225 rises 1.34% to 50,884 as Wall Street rebound lifts global sentiment.

- SoftBank, Advantest, and Nintendo lead gains while Sanrio tumbles 13.8% after weak earnings.

- Weak wage data eases BoJ tightening risks, supporting yen-sensitive Japanese equities.

The rally was broad-based, with major sectors posting gains as investors rotated back into risk assets. Heavyweights like SoftBank Group climbed 2.9%, Advantest added 3.2%, and Lasertec rose 3.7%, driving momentum across the index.

Technical structure signals ongoing strength

The Nikkei’s technical structure remains bullish. Price trades above the 20-, 50-, 100-, and 200-day EMAs, all rising in parallel — a classic signature of a strong uptrend. After briefly retesting the rising channel support, the index bounced sharply, confirming buyers remain in control.

Nikkei 225 index price dynamics (Source: TradingView)

A daily close above 51,200 would confirm a breakout continuation, targeting 52,500–53,000 at the channel top. On the downside, key support sits at 50,000, followed by 49,500–49,000, where the EMA cluster offers solid structural backing. The RSI holds near 62, indicating bullish momentum without signs of exhaustion.

Macro backdrop supports risk sentiment

Economic data show mixed signals. Japan’s real wages fell 1.4% year-over-year in September, marking the ninth consecutive decline. While weaker wages pressure household spending, the data also reduce the need for BoJ tightening. A dovish policy outlook and a softer yen often support exporters and corporate profits, reinforcing the bullish setup for Japanese equities.

Globally, a rebound in U.S. markets has stabilized sentiment. Investors are finding renewed confidence in cyclical and tech-linked names, with the Nikkei closely tracking Wall Street’s tone.

Earlier analysis emphasized that the Nikkei’s uptrend remains intact as long as price holds above 49,500. That view still stands. Buyers continue to defend structure, EMAs remain aligned upward, and momentum indicators support continuation. A breakout above 51,200 could trigger a fresh leg toward 52,500–53,000 in the coming sessions.

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