The Nikkei 225 achieved a record intraday high on Monday, climbing above 63,300. The index rose more than 600 points from Friday’s close during Tokyo trading hours. It reached 63,385.04, beating Thursday’s previous intraday record of 63,091.14. Consequently, this record intraday high reflected strong gains in technology and semiconductor stocks. Major memory chip maker Kioxia Holdings Corp led the upward momentum. However, profit taking later pushed the index lower during the evening session. The Nikkei closed down 295.77 points at 62,417.88.
Major US stock indexes rose across the board at the end of last week. Strong US job growth exceeded market expectations, confirming a robust American economy. Technology stocks led the gains in US markets. Therefore, Japanese AI and semiconductor firms followed Wall Street’s positive cue. Companies reporting strong earnings, including Ajinomoto and Sony Group, also saw share price increases. Nevertheless, the record intraday high proved short-lived as investors locked in profits. SoftBank Group Corp contributed significantly to the selling pressure.
Investor confidence took a hit from rising Middle East tensions. US President Donald Trump rejected Iran’s response to a peace proposal on Sunday. He called Tehran’s reply totally unacceptable on social media. Consequently, crude oil prices rose as the outlook for future negotiations became murky. This increased uncertainty about the conflict’s duration weighed heavily on market sentiment. An official at a major securities firm noted that the unclear situation dampened investor confidence. As a result, the record intraday high could not sustain itself through the close.
Looking ahead, market participants will watch geopolitical developments closely. Any escalation in the Middle East could trigger further volatility. Conversely, progress in peace talks might restore bullish momentum. For now, the record intraday high serves as a reminder of the market’s sensitivity to global risks. The Nikkei’s performance remains tied to US tech trends and oil price movements. Investors should brace for continued fluctuations in the coming sessions.
