Japan’s benchmark Nikkei 225 extended its rally for a third straight session on Thursday, closing at a fresh record high as heavyweight technology stocks continued to drive momentum.
The index rose 0.47 percent to finish at 59,416.49, marking its highest-ever closing level. In contrast, the broader TOPIX slipped marginally by 0.04 percent to 3,714.85, highlighting a divergence in market performance.
The rally was largely supported by gains in heavily weighted tech names, which have benefited from sustained global demand linked to the artificial intelligence and semiconductor sectors.
However, market breadth remained weak. Of the roughly 1,600 stocks listed on the Tokyo Stock Exchange’s main market, only 21 percent advanced, while a significant 75 percent declined, and 2 percent remained unchanged.
The disparity suggests that the record-breaking performance of the Nikkei is being driven by a narrow group of influential stocks rather than a broad-based rally.
Despite this, investor sentiment towards Japanese equities remains supported by strong corporate earnings, a weaker yen, and continued global interest in technology-linked sectors.
For now, the Nikkei’s upward trajectory reflects the strength of its heavyweight constituents, though the lack of broader participation could raise questions about the rally’s sustainability if leadership narrows further.
With inputs from WAM
