Japan Morning Briefing: What to Watch on October 2, 2026

Tokyo investors face a cautiously optimistic start to Friday’s session as Wall Street delivered modest gains overnight, though geopolitical tensions in the Middle East continue to simmer beneath the surface. With USD/JPY holding firm at ¥157.30, export-heavy sectors remain in focus as traders await the crucial US jobs report later today.

Wall Street Sets Steady Tone Despite Geopolitical Headwinds

US markets closed mixed but largely positive, with the Nasdaq 100 leading gains at +0.31% to $742.03, while the S&P 500 edged up 0.18% to $763.99. The Dow Jones barely moved, gaining just 0.01% to $508.62. Boeing shares found relief after engineers approved a new contract, avoiding a potentially damaging strike. However, escalating Middle East tensions, including new US sanctions on Iran’s transportation sectors and ongoing security concerns, kept risk appetite in check.

Yen Weakness Boosts Export Outlook

The USD/JPY rate at ¥157.30 continues to favor Japanese exporters, particularly automotive and technology giants. Toyota, Sony, and Nintendo could see renewed buying interest as the weaker yen enhances overseas earnings prospects. For NISA investors building long-term positions, this currency backdrop supports the investment case for quality exporters trading at reasonable valuations.

Today’s key catalyst arrives with the US September jobs report, which could influence Federal Reserve policy expectations and drive further yen volatility. Sectors to watch include technology exporters, automotive manufacturers, and machinery companies that benefit from the current exchange rate environment. Defensive plays in utilities and real estate may lag if risk appetite improves on solid employment data.

This briefing is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making investment decisions.