The Nikkei 225 Index Closes 0.69% Lower

The Nikkei 225 Index fell 0.98% to close at 62,654 on Thursday, while the broader Topix Index lost 1.03% to 3,879, with Japanese equities retreating from record highs as investors locked in profits following a strong rally. SoftBank Group dropped 4.3% despite reporting a sharp increase in quarterly profit driven by valuation gains tied to its investment in OpenAI. Meanwhile, Fujikura plunged 19.1% even after posting strong double-digit growth in both sales and profits. Elsewhere, mining company Mitsui Kinzoku declined 7.9% after issuing a weaker profit outlook for FY2027 despite forecasting higher revenue. Other major decliners included Kioxia Holdings (-4.6%), JX Advanced Metals (-4.7%), Mitsubishi Heavy Industries (-5.7%), Sumitomo Electric (-5.1%) and Sony Group (-5.3%). Investors also continued monitoring the meeting between US President Donald Trump and Chinese President Xi Jinping amid hopes for improved relations despite ongoing tariff disputes and other contentious issues.

The Nikkei 225 Index dropped 438 points or 0.69 percent on Thursday to close at 62834 points. Losses were led by Fujikura (-19.10%), Mitsui Engineering & Shipbuilding (-16.19%) and Mitsubishi Materials (-13.16%). Offsetting the fall, top gainers were Tokai Carbon (17.64%), Sumitomo Osaka Cement (10.99%) and Nidec (10.80%).

The Nikkei 225 Index rose 0.8% to trade above 63,700 on Thursday, setting fresh all-time highs as strong corporate earnings and upbeat guidance reinforced investor confidence, while sustained demand for artificial intelligence-related stocks continued to drive gains. Japanese equities also mirrored a tech-led rally on Wall Street overnight, even as accelerating US inflation fueled concerns that the Federal Reserve could still opt for another rate hike. At the same time, markets remained focused on the meeting between US President Donald Trump and Chinese President Xi Jinping, with discussions expected to prioritize trade relations. Among individual movers, gains were led by Kioxia Holdings (1.7%), Furukawa Electric (1.5%), Advantest (2.8%), Fanuc (10.4%) and Resonac Holdings (15.6%). In contrast, mining firm Mitsui Kinzoku fell 11.8% after issuing a weaker profit forecast for FY2027 despite projecting higher sales.