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Nikkei Hits Record Then Pulls Back as Traders Take Profits

Profit-taking after a rapid AI- and semiconductor-led rally pushed the index below 65,000, signaling higher short-term volatility.

Overview

  • The Nikkei closed at an all-time high of ¥65,158.19 after a surge in AI and semiconductor-linked stocks driven by buying in U.S. technology names.
  • TOPIX also reached intraday and closing highs, indicating gains were broad-based across the Tokyo market rather than confined to a few stocks.
  • Falling crude futures and hopes for progress in negotiations between the U.S. and Iran helped underpin risk appetite by easing cost and geopolitical concerns.
  • Profit-taking in the next session triggered a sharp intraday pullback of more than ¥500 and produced a morning close of ¥64,897.64, briefly pushing the index below the ¥65,000 mark.
  • The market has climbed over ¥5,000 in three trading days into the record close, leaving prices elevated and sensitive to further swings driven by tech momentum, oil moves, and geopolitical news.