Japanese Shares Climb on Tech Strength

The Nikkei 225 Index rose 0.7% to above 59,200 on Tuesday, building on gains from the previous session as technology and AI-related stocks drove the market higher. Sentiment was also supported by easing oil prices, with investors looking ahead to a second round of US-Iran peace talks in Islamabad before the current ceasefire expires. Vice President JD Vance is set to lead the US delegation again, while Iran is also reportedly preparing to send representatives, reversing earlier indications that it would not participate in further negotiations. Notable tech gainers included Kioxia Holdings (2.4%), SoftBank Group (4.9%), Lasertec (4.6%), Tokyo Electron (4.3%), and Advantest (2%).

The Nikkei 225 Index rose 0.6% to close at 58,825, while the broader Topix Index gained 0.43% to 3,777 on Monday, recovering some losses from the previous session as renewed enthusiasm for artificial intelligence stocks outweighed concerns over escalating US-Iran tensions. The US seized an Iranian-flagged cargo vessel in the Gulf of Oman, while Tehran reversed plans to reopen the Strait of Hormuz and said it would not take part in a second round of negotiations. Ongoing disruptions in the strategic waterway have triggered a severe energy supply shock, heightening inflation risks and threatening global growth, with oil-importing economies such as Japan particularly vulnerable. Still, AI-driven optimism and corporate earnings supported domestic equities, with notable gains from SoftBank Group (5.5%), Lasertec (5.4%), and Unitika (21.4%).

The Nikkei 225 Index gained 323 points or 0.55 percent on Monday to close at 58799 points. Gains were led by Chugai Pharma (6.13%), Nidec (5.91%) and Lasertec Corp (5.66%). Biggest losers were Kawasaki Kisen (-3.80%), Tokyo Gas (-3.70%) and Inpex (-3.59%).