The Nikkei 225 Index Closes 5.58% Higher

The Nikkei 225 Index climbed 0.5% to above 64,300, while the broader Topix Index advanced 0.9% to 3,886 on Tuesday, as Japanese equities snapped a three-day losing streak amid a rebound in technology and artificial intelligence stocks. Domestic markets also took cues from Wall Street's overnight gains, with chipmakers recovering strongly after Friday’s selloff. Leading tech and AI performers included Kioxia Holdings (+2.6%), Tokyo Electron (+7.5%), Murata Manufacturing (+2.9%), Taiyo Yuden (+4.8%), and Advantest (+2.4%). Meanwhile, investors continued to expect the Bank of Japan to raise interest rates later this month as policymakers grapple with persistent inflation. On the geopolitical front, Iran and Israel agreed to halt attacks against each other, easing concerns that a broader conflict could intensify energy-driven inflationary pressures.

The Nikkei 225 Index decreased 3123 points or 4.69 percent on Monday to close at 63465 points. The decline was led by Sumco (-13.88%), Tokuyama (-10.90%) and Minebea (-9.87%).

Asian equity markets moved sharply lower on Monday, led by South Korea’s benchmark KOSPI Index, which plunged as much as 8.8%, as investors reacted to a tech-driven selloff on Wall Street that heavily impacted semiconductor and artificial intelligence-related stocks. Stronger-than-expected US jobs data further weighed on sentiment by reinforcing expectations that the Federal Reserve will raise interest rates later this year, pushing Treasury yields higher and reducing the appeal of equities. Meanwhile, geopolitical tensions intensified after Iran launched several rounds of missiles toward Israel as a warning against further military actions in Lebanon, raising concerns over the stability of a fragile ceasefire as peace talks remain stalled. Other major regional markets also came under pressure, with shares in Australia, Japan, China, and Hong Kong posting significant declines.