Nikkei rises as tech stocks rally and oil prices ease

Japan?s Nikkei 225 Index climbed 0.89% to close at 59,349 on Tuesday, extending gains from the previous session, driven by strong performance in technology and AI-related stocks.

Investor sentiment was also supported by softer oil prices, as markets focused on a second round of US?Iran peace talks in Islamabad ahead of the expiry of the current ceasefire. JD Vance is expected to lead the US delegation, while Iran is reportedly preparing to participate despite earlier reluctance.

Japan?s economy remains particularly sensitive to developments in the Middle East due to its reliance on oil imports from the region. Leading gains in the market were tech stocks such as Kioxia Holdings, SoftBank Group, Fujikura, Lasertec, and Tokyo Electron.