Japan’s benchmark Nikkei 225 fell back below the 60,000 mark on Thursday after briefly hitting a record high, as investors locked in profits amid lingering geopolitical uncertainty.

Foreign investors sold the most Japanese shares since September 2024 last week, reflecting growing concerns over the economic impact of the Iran conflict.

Asian stocks extended gains on Thursday, buoyed by upbeat earnings and growing hopes for trade deals between the U.S. and major partners. Japan’s Nikkei 225 is now within striking distance of its all-time high, leading a region-wide rally.

Asian stocks experienced a decline as traders prepared for increased volatility ahead of next week’s US election and the Federal Reserve's interest rate decision.