Japan’s Nikkei Stock Average Retreats as Traders Take Profits after Tech Rally (UPDATE 1)　

Reuters

13:20 JST, November 11, 2025 (updated at 16:34 JST)

TOKYO, Nov 11 (Reuters) – Japan’s Nikkei share average fell on Tuesday, reversing earlier gains, after investors took a rally in tech shares as an opportunity to lock in profits.

The tech-heavy Nikkei .N225 ended the day down 0.14% at 50,842.93, after earlier rising as much as 1.18% to a one-week high of 51,513.16.

The broader Topix .TOPX eked out a 0.13% gain to 3,321.58.

Artificial intelligence-related shares led the Nikkei’s early advance after Wall Street peers rallied overnight amid optimism for an imminent end to the U.S. government shutdown.

But the momentum ebbed in the afternoon, and the benchmark index was down as much as 0.65% at one point.

“There’s no single, big driving force” for stock gains, “and some traders are taking the opportunity to lock in profits,” said Maki Sawada, a strategist at Nomura Securities.

The Nikkei rallied to an all-time high of 52,636.87 a week ago, powered by both the global fervor over AI and hopes for fiscal stimulus under new Japanese Prime Minister Sanae Takaichi.

The index ended Tuesday with 117 of its 225 components down, compared with 105 that rose and three that ended flat.

AI-focused startup investor SoftBank Group 9984.Twas an early standout, jumping as much as 5.55% before paring gains to 1.98% at the close.

After the bell, the company announced a 4-for-1 stock split along with net profit that greatly exceeded analyst forecasts.

Sony Group 6758.T climbed 5.51% after reporting robust earnings during the midday trading recess.

Chip-making machinery manufacturer Tokyo Electron 8035.T and chip-testing equipment maker Lasertec 6920.T both shed early gains to end the day flat. Advantest 6857.T sank 4.08%.