Nikkei 225 Shatters Historic 60,000 Milestone Following Middle East Ceasefire and Tech Surge

The Nikkei 225 broke the 60,000 barrier for the first time in history. Discover the factors behind the rally and why the index has recovered all Iran war losses.

By: AXL Media

Published: Apr 24, 2026, 8:40 AM EDT

Source: Information for this report was sourced from The Japan Times

Psychological Barrier Broken in Landmark Trading Session

Japan’s financial markets reached a momentous psychological milestone on Thursday morning as the Nikkei 225 benchmark index climbed above 60,000 for the first time. The index hit an all-time high of 60,013.98 within minutes of the opening bell, driven by a powerful rally in chip-related companies like SoftBank Group. However, the surge proved short-lived as investors began to question the sustainability of current valuations. By the close of trade, the Nikkei had retreated to 59,140.23, ending the day down 0.75% as momentum shifted toward profit-taking in the tech sector.

Geopolitical Stability and U.S. Tech Momentum Provide Tailwinds

The record-breaking morning followed a wave of optimism from the United States, where markets surged after President Donald Trump announced an extended ceasefire in the Middle East. The easing of the regional conflict provided a significant lift to global sentiment, pushing the S&P 500 and Nasdaq to their own record highs. Analysts noted that the Nikkei's performance remains tightly coupled with the Philadelphia Semiconductor Index (SOX), which recently marked a 16-session winning streak. As the SOX nears its own 10,000-point milestone, market watchers expect continued volatility as investors balance AI-driven growth against "expensive" stock labels.

Full Recovery from the Economic Shocks of the Iran War

Thursday’s milestone marks a total reversal of the downturn experienced in late February 2026, when a U.S.-Israeli strike on Iran triggered a sharp sell-off in Tokyo. At the time, fears of skyrocketing oil prices and spiraling inflation threatened to derail Japan's economic recovery. With the Nikkei now up 15% over the past month, the market has effectively erased all war-related losses. This resilience is attributed to a stabilizing energy outlook and the return of foreign capital as the "war shock" that gripped the region earlier in the year continues to fade.