Japanese shares rebound on Tuesday to close higher driven by the renewed interest in AI and semiconductor related shares coupled, and the hope of a resolution to the Middle East crisis.
The Nikkei 225 climbed 2.2%, or by 1,392.03 points, to end at 65,416.63.
Movement in the domestic market tracked Wall Street's overnight gains that were driven by the recovery made by chipmakers after Friday's selloff.
Investors were enthused as the rise in global oil prices eased after Israel and Iran said they would halt attacks on each other for now.
On the domestic front, Japanese investors sold 2.72 trillion yen worth of foreign stocks net in May, which is seen as the fastest pace of sell off in about five years amid the Middle East conflict and questions over a tech-driven market rally.
Also, Japan's machine tool orders increased 37.4% year over year in May to 176.8 billion yen, easing from the 45.1% expansion in April, according to preliminary data from the Japan Machine Tool Builders' Association released Tuesday.
Among companies, Smaregi (TYO:4431) declared a final dividend of 24 yen per share for the fiscal year ended April 30, up from 15 yen per share a year earlier, according to a Monday filing with the Tokyo Stock Exchange.
Also, Panasonic (TYO:6752) aims to nearly triple AI infrastructure sales to almost 1.4 trillion yen by the fiscal year ending March 2029, driven by enhanced products and increased production. It aims to invest 500 billion yen to improve its devices and systems, as well as expand production, according to an investor presentation on Monday.