Nikkei 225 slips below 60,000 after brief record high on profit-taking

Japan’s Nikkei 225 briefly surged to an intraday record of 60,013.98 during Thursday morning trading, then reversed course as investors locked in gains and the market retreated.

The early rally was supported by positive sentiment from U.S. equities and buying in technology-related names, but the index ended the choppy session at 58,952.11. The broader TOPIX fell about 1.2% to 3,700.1 as declines spread beyond the narrow group of leaders. Market internals showed a record-high NT ratio, highlighting how the Nikkei’s advance has outpaced the wider market.

Chip-related stocks and major tech investors gave back some gains: Advantest and Tokyo Electron softened after morning strength, while SoftBank Group’s rise narrowed. Commentators pointed to lingering geopolitical risks and elevated crude oil prices as factors that could weigh on corporate profitability and limit upside for domestic demand-sensitive names.

The move followed reports that the U.S. extended a ceasefire with Iran, which initially buoyed risk appetite; however, concerns over shipping security in the Strait of Hormuz and continued oil price pressure prevented a broad-based risk-on shift. These dynamics underscore the uneven nature of the rally and the importance of underlying earnings momentum to sustain higher index levels.

Strategists expect near-term consolidation and further profit-taking phases unless fresh positive catalysts emerge to broaden the advance. Investors are advised to monitor geopolitical developments, energy prices and earnings flow to reassess positioning and sector exposure in Japanese equities.