Global Market: What drove the Nikkei past the 60,000 mark today

Japan’s Nikkei pushed past the symbolic 60,000 level for the first time on Thursday, marking a major milestone driven largely by gains in technology stocks and an improvement in global risk sentiment.

Although the index later eased slightly to 59,790, up 0.34% as of 1210 GMT, the move reflects a combination of sector-specific momentum and geopolitical developments influencing investor behaviour, Reuters said.

A key driver of the rally was the strong performance in technology-related shares. Heavyweight technology investor SoftBank Group surged 8.9%, providing significant upward momentum to the index. Chip-related companies also contributed to the gains, with Advantest rising 2.65% and Tokyo Electron up 0.81%. These firms are closely tied to global semiconductor demand, and their performance often signals optimism about the broader tech cycle. Additionally, fibre optic cable maker Fujikura posted a modest gain of 1%, reinforcing strength across the tech ecosystem.


Beyond sector performance, improving global risk sentiment played an important role. Markets responded positively after U.S. President Donald Trump announced an indefinite extension of the ceasefire with Iran, following mediation efforts by Pakistan. The development reduced immediate fears of escalation in the Middle East, a region critical to global energy supplies and trade routes. Lower geopolitical tension tends to encourage investors to move into equities, particularly growth-oriented sectors like technology.

However, the geopolitical backdrop remains complex. The U.S. Navy’s blockade of Iranian ports continues, and Iran’s seizure of two ships in the Strait of Hormuz highlights lingering risks. These factors may explain why gains in the Nikkei were relatively modest despite the headline milestone.

Interestingly, the rally was not broad-based. Of all Nikkei components, only 42 stocks rose while 158 declined and five remained unchanged. This uneven participation suggests that the index’s climb was concentrated in a handful of influential stocks, particularly within the technology sector. Meanwhile, the broader Topix index fell 0.7% to 3,718.59, underscoring the divergence between large-cap tech-driven gains and the wider market.

The Nikkei’s move toward a record high was fueled by strong performance in key technology stocks and a boost in investor confidence due to easing geopolitical tensions. However, the narrow breadth of the rally and ongoing uncertainties in global politics indicate that the momentum may still be fragile.