Japanese equities closed higher Tuesday, tracking Wall Street gains as improved risk sentiment followed U.S. President Donald Trump's comments that Iran remained open to talks despite tensions over the Strait of Hormuz.
The Nikkei 225 rose 2.43%, or 1,374.62 points, to close at 57,877.39.
The US and Iran are exploring another round of talks to extend a ceasefire after negotiations over the weekend ended without an agreement.
The move comes after Trump ordered a naval blockade of the Strait of Hormuz to increase pressure on Tehran, despite the ongoing diplomatic efforts. The blockade threatens to disrupt global energy flows and escalate regional tensions, with key allies urging Washington to de-escalate.
On the corporate front, Orix (TYO:8591) rose 3% after agreeing to sell its full stake in IX NTI Holdings to an Olympus Partners affiliate, with the deal subject to approvals and uncertain financial impact.
Shiseido (TYO:4911) fell 3% after a report said foreign brands are relying on premium strategies to navigate weak consumer spending in China amid rising local competition.
Fujitsu (TYO:6702) gained 4% as the company is reportedly pivoting toward AI services to tap global demand for alternatives to U.S. technology.