Japan's Nikkei share average briefly topped 60,000 on Thursday before profit-taking reversed the gains, closing 0.75% lower at 59,140.23 after hitting a record high of 60,013.98. Geopolitical uncertainties in the Middle East weighed on sentiment amid rising oil prices. U.S. President Donald Trump's announcement extending the ceasefire with Iran supported early rises, though Iranian officials rejected any agreement.
Japan's Nikkei share average touched a record high of 60,013.98 early on Thursday in Tokyo trading before reversing course. According to Reuters, initial gains were fueled by U.S. President Donald Trump's announcement extending the ceasefire with Iran. The index ended 0.75% lower at 59,140.23, while the broader Topix fell 0.76% to 3,716.38.
The pullback came amid lingering geopolitical risks from the U.S.-Iran war that began in late February. Trump made a unilateral extension of the truce on Tuesday, but Iranian officials denied agreement and criticized the U.S. Navy's blockade of Iran's sea trade as an act of war. Oil prices rose as the Strait of Hormuz remained partially closed.
"There are still uncertainties surrounding the Middle East war. The Strait of Hormuz is not completely open and oil prices remain high," said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management. "Investors have bought shares on optimism for the war's end until now. But for the index to rise further, they need more positive cues."
Gains were concentrated in artificial intelligence-related stocks, with SoftBank Group ending 3.86% higher, while chipmakers Advantest and Tokyo Electron closed flat. The Nikkei-to-Topix NT ratio hit a record 15.91, highlighting the narrow rally. On the Tokyo Stock Exchange's prime market, 21% of 1,600 shares rose, 75% fell, and 2% were unchanged.
