On Tuesday (October 15), the Japanese stock market saw another rise, with the Nikkei Average Index surpassing 40,000 points, reaching a three-month high, boosted by Wall Street's strong closing and the weakening yen lifting investor sentiment.

The Japanese market reopened on Monday after a public holiday. The Nikkei Index touched 40,257.34 points intraday, the highest since July 18, before retreating in the afternoon.

At the close, the benchmark Nikkei 225 Index rose by 0.8%, closing at 39,910.55 points, marking four consecutive trading days of gains. The broader Topix Index increased by 0.6%, closing at 2,723.57 points. #JapaneseMarket#

At the Tokyo Stock Exchange, the number of rising stocks was 2,270, while the number of falling stocks was 1,342, and 256 stocks closed unchanged.

Measuring the Nikkei 225 Index options.Implied volatilityThe Nikkei volatility remains unchanged, trading at 28.67.

The strong performance of the Japanese stocks is attributed to the strength of the U.S. stocks. On Monday, Wall Street closed higher, with the S&P 500 Index and Dow Jones Industrial Average both hitting record highs.

Stock prices of the ai giant nvidia hit a record high, with outstanding performance in semiconductor stocks. This also boosted Japanese chip-related stocks, with tokyo electron ltd. unsponsored adr and Advantest Corporation up 4.5% and 3.4% respectively.

In other individual stock news, SoftBank Group, a startup company focusing on ai investments, saw its subsidiary Arm Holdings' stock price rise overnight, causing SoftBank's stock price to soar by 5.8%. Lasertec Corp climbed 6.6%, becoming the stock with the largest gain in the index.

The worst-performing stocks were in the energy sector, with ENEOS Holdings falling 4.7% and Inpex dropping 3.3%, due to the continuous decline in oil prices for the third consecutive trading day.

Meanwhile, the Japanese stock market was supported by the weakening yen, which usually boosts overseas earnings of exporters when repatriated.

The yen against the dollar hovered around the near low of 149.98 set on Monday, the lowest level since early August.

Sean Teo, a sales trader at Saxo Singapore, stated that in addition to the expected weakening yen aiding Japanese corporations' performance this quarter, some companies, like fast retailing, have released record-breaking profit reports, setting a positive tone for the market.

"We might see this trend continue throughout the entire earnings season," he said, despite the challenges American companies may face due to the still high interest rate environment.