Japanese stocks closed higher on Tuesday, with the Nikkei 225 Index gaining 0.74% to 67,743 after recovering from early losses. Technology and semiconductor stocks led the rebound as investors bought shares after recent declines, despite a weak performance by US tech stocks overnight amid concerns about the sustainability of the AI-driven rally.
Gains were seen across major chip-related companies, including Kioxia Holdings, SoftBank Group, Advantest, SUMCO Corp, and SCREEN Holdings.
Meanwhile, investors also kept an eye on rising tensions in the Middle East after US President Donald Trump announced plans to reinstate a blockade on Iranian vessels passing through the Strait of Hormuz. The move pushed oil prices higher and raised concerns that higher inflation could lead central banks to keep interest rates elevated.
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