Japan’s Nikkei share average experienced an increase on Tuesday, bolstered by a resurgence in technology stocks that have significantly contributed to the index’s record quarterly gains. The benchmark Nikkei 225 advanced 0.86% to close at 70,062.32. For the April-June quarter, the index experienced a remarkable increase of 37%, representing its most significant quarterly gain in records dating back to 1965. The broader Topix rose 0.73% to 4,010.88.

The Nikkei’s gains were influenced by a rally in U.S. stocks overnight, highlighted by a 2.04% increase in the Nasdaq, driven by a rebound in major tech-related shares and a reduction in geopolitical tensions following the agreement between the U.S. and Iran to resume talks. Japan’s May industrial output, released earlier on Tuesday, increased by 0.5% month-on-month, falling short of forecasts yet indicating a degree of resilience in the manufacturing sector. The Nikkei experienced a decline during a portion of the session, and the market breadth at the close reflected a mixed performance, with 104 stocks advancing compared to 121 stocks declining.

“While we are seeing a rebound today, centered on certain semiconductor-related stocks and AI-related stocks that had been experiencing notable recent declines, the overall market remains weak,” stated Maki Sawada. The largest percentage gainers in the index were Taiyo Yuden, which increased by 8.28%; Furukawa Electric, rising by 7.04%; and Screen Holdings, advancing by 6.20% to reach a record high. The largest losers included NEC 6701, which fell by 3.01%; Nitori Holdings 9843, declining by 2.74%; and Konica Minolta 4902, decreasing by 2.31%.