FOCUS: Mideast impasse overshadows Tokyo stocks despite record-setting rally

TOKYO - An impasse in U.S.-Iran peace talks and Japan's oil supply concerns may overshadow optimism in the Tokyo stock market going forward despite the benchmark Nikkei Stock Average's recent record-setting rally led by artificial intelligence growth hopes, analysts say.

The Nikkei's rally on Thursday to reach the 60,000-point level for the first time was largely supported by gains in heavyweight technology components. But the market soon became vulnerable to selling by investors seeing signs of overheating after the index surged nearly 20 percent from the start of the year.