Nikkei Surpasses 70,000 Points for First Time Since July; Oil Prices Dip

Tokyo's Nikkei index surged approximately 2.5% on Monday, crossing the 70,000-point threshold for the first time since early July. The index reached 70,024 points in morning trading, a gain of over 1,700 points from Friday's close. The broader Topix index also rose, adding about 1.1% to reach 4,136 points. Technology and AI-related chip stocks led the gains, buoyed by positive sentiment from Wall Street. The US market ended the week higher after a September jobs report showed fewer new positions than anticipated, reducing expectations for an immediate Federal Reserve interest rate hike.

The Nikkei first surpassed 70,000 points on June 18, closing that day at 71,053. The index's recent performance has been notably rapid, having crossed 40,000 points in March 2024, 50,000 in October 2025, and 60,000 in April 2026. In other Asian markets, the Hang Seng index in Hong Kong fell by about 0.3%, while Shanghai and Seoul exchanges were closed for holidays. The US dollar traded around 157.7 yen.

Oil prices saw a decline, with Brent crude falling approximately 0.7% to around $101.60 per barrel and US WTI dropping about 1% to $90.10. This decrease followed an agreement by G7 nations on Friday to release 100 million barrels of crude oil and diesel from emergency reserves and a commitment to avoid energy export restrictions. Meanwhile, OPEC+ members agreed to maintain current production quotas for the upcoming month.

Despite attacks on vessels in the Strait of Hormuz, Persian Gulf export data indicated that shipments in the last week of September exceeded pre-war levels for four out of seven days. However, supply risks persist, as the Houthis claimed to have launched missiles and drones at Saudi Aramco facilities in Riyadh and the Khurais region, though Saudi Arabia has not confirmed these attacks.

On the Tel Aviv Stock Exchange, the trading day was expected to open positively. Dual-listed stocks returning from New York showed a theoretical positive gap of about 0.3% for the TA 35 index. Camtek was anticipated to open up around 3.9%, Audiocodes by 4.6%, Ormat by 3.4%, and Elbit Systems by 1.8%. Conversely, Formula Systems was projected to open down approximately 5.5%. Investors will be closely watching the minutes from the Federal Reserve's last meeting later in the week for clues on future interest rate decisions.