Nikkei 225 up 0.9%, Topix down 0.2% at morning close

The divergence between the Nikkei and Topix signals a narrowing rally, with large-cap strength overshadowing broader market weakness. This split suggests rotation, not broad-based optimism, and could reflect sector-specific or index-weight dynamics rather than a uniform risk-on mood. For market watchers, the key is whether this gap persists into the afternoon session, as sustained divergence often points to fragility beneath the surface. If the Topix continues to lag, it may indicate that gains are concentrated in a few heavyweights, leaving the broader market vulnerable to sentiment shifts.