Japan’s Nikkei 225 briefly crossed the 60,000 mark for the first time on Thursday, supported initially by gains in technology stocks. Improved risk sentiment followed U.S. President Donald Trump’s decision to extend the ceasefire with Iran, which lifted global markets early in the session.
However, the rally did not sustain. The index turned volatile and was largely unchanged by midday, after slipping as much as 0.7% from its peak. At its highest, the Nikkei touched a record level of 60,013.98. The broader Topix index also remained flat at 3,744.93.
Despite the ceasefire extension, tensions in the Middle East continue to weigh on sentiment. The U.S. Navy’s blockade of Iranian ports remains in place, while Iran has seized two vessels in the Strait of Hormuz, keeping oil prices elevated.
Market participants remain cautious. Hiroyuki Ueno of Sumitomo Mitsui Trust Asset Management noted that uncertainty around the conflict persists, particularly with the Strait not fully open and energy prices staying high. While investors had earlier bought into optimism around a possible end to the war, further upside may now depend on stronger fundamental triggers, especially for domestic demand-driven stocks.
The Nikkei has now recovered all its losses since the start of the U.S.-Iran conflict in late February. However, the rebound has been narrow, largely driven by artificial intelligence-linked stocks such as SoftBank Group and Advantest.
This trend is reflected in the NT ratio, which measures the Nikkei’s performance relative to the broader Topix. The ratio recently hit a record high, indicating that gains in the benchmark index have outpaced the wider market.
Among stocks, chip-related companies saw buying interest. Advantest and Tokyo Electron gained during the session, while SoftBank Group surged sharply. Fujikura also edged higher.
On the other hand, Fast Retailing, the parent company of Uniqlo, declined and weighed the most on the index.
Market breadth remained weak overall, with a majority of stocks on the Tokyo Stock Exchange trading lower, highlighting the uneven nature of the current rally.
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