The Nikkei 225 closed Friday, 3 July 2026, up 0.74% at 69,243.68, reversing an early slide of as much as 1.6%. Weaker US jobs data cooled expectations for further Federal Reserve rate increases, outweighing the AI and semiconductor valuation worries that had weighed on Tokyo through much of the week.
Japan's Nikkei 225 closed Friday's session up 510.53 points, or 0.74%, at 69,243.68, recovering after sliding as much as 1.6% earlier in the day to a low of 68,676.26. The turn erased the negative tone that had built up over a volatile week in Tokyo.
The rebound came as weaker-than-expected US jobs data pushed investors to scale back expectations for further Federal Reserve interest rate increases. That shift offset persistent concerns about elevated valuations across the artificial intelligence and semiconductor sector, which had weighed on trading for much of the week. The broader Topix index climbed 0.9% over the session.
The jobs print that turned sentiment
The decisive catalyst was the softer US non-farm payrolls figure, which showed the economy adding just 57,000 jobs in June against a consensus of roughly 115,000. Before that release, sentiment had pointed lower: the Nikkei opened flat and fell to as low as 67,769.98 points, its weakest level since mid-June.
Friday's gain follows a difficult Thursday, when the Nikkei 225 had tumbled 1,741.81 points, or 2.47%. The index still finished Friday within a broad 52-week range of 39,288.90 to 72,831.73, and over the trailing twelve months it has posted a gain of approximately 72.75%.
Chip names lead the rebound
The recovery ran widest through names hit hardest earlier in the week. Kioxia Holdings surged 7.3%, reversing a near-9% drop the day before. Kokusai Electric added 6.5% and Fast Retailing climbed 4.3%. Sony Group advanced 2.3% and Toyota Motor added 1.1%.
Yen and domestic data in the background
Currency swings stayed in focus. The yen surged nearly 1% during Thursday's session amid speculation that Japanese authorities could intervene, before the dollar traded in the lower 161-yen range on Friday. Japan's Ministry of Finance has declined to comment directly on the recent yen volatility. Domestic data offered a further prop, with the final S&P Global Japan Services PMI for June rising to 52.2 from 50.0 in May.
The week's volatility had been driven partly by questions over elevated AI and semiconductor valuations. The index had earlier reached a record all-time high of 58,850 points on 27 February 2026, and touched a 52-week peak of 72,831.73 on 22 June.
Source: BBN Times
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