Japan’s Nikkei share average experienced an uptick on Tuesday as markets reopened following a holiday, with investors capitalising on opportunities after the index’s most significant weekly drop in over a year. The benchmark Nikkei 225 advanced 3.26% to close at 66,232.19, recovering part of its 6.4% plunge last week. The broader Topix opened new tab climbed 2.44% to 4,014.95. While Japanese markets were closed on Monday, Wall Street indexes experienced a slight decline as an escalation in the U.S.-Iran conflict exerted upward pressure on oil prices. The Nikkei experienced an uptick in the afternoon on Tuesday, influenced by the performance of the tech-centric share index in South Korea.

Investor focus is shifting towards the upcoming second-quarter results expected later this week from prominent players in the AI sector, such as Alphabet, Tesla, and Intel. Earnings for S&P 500 companies in the semiconductor and related sectors are projected to increase by 133% for the second quarter compared to the same period last year, as reported by LSEG. “Compared to the sharp fall we saw in the latter half of last week, this technical rebound does not yet appear to have very strong momentum,” said Wataru Akiyama. “Upcoming earnings ​announcements in Japan ⁠and the U.S., particularly those from major names, are likely to resolve some of this weakness ​in AI-related shares.”

The largest percentage gainers in the index were chipmaker Kioxia Holdings, which increased by 17.18%, followed by Ibiden, rising by 11.03%, and Socionext, which saw a gain of 9.11%. The largest losers included Nintendo, which experienced a decline of 4.13%, followed by Kikkoman, down 2.49%, and CyberAgent, which fell by 2.36%.