Japan’s Nikkei share average reversed course to conclude the day on a positive note on Tuesday, as chip-related stocks mirrored the rebound observed in South Korean shares. The Nikkei experienced an increase of 0.5%, concluding the session at 65,856.43, following a decline of as much as 1.4% earlier in the trading day. The broader Topix gained 0.5% to 4,093.67. “The Topix traded higher since the open, which meant that money was flowing into Japanese stocks,” said Shuji Hosoi. “Chip-related shares weighed on the Nikkei, and they changed course as South Korea’s benchmark reversed its losses,” he said.

Securities in South Korea and Japan experienced a decline earlier in the session, mirroring the trend on Wall Street, as investors persisted in divesting semiconductor stocks worldwide in anticipation of Nvidia’s earnings report. Samsung Electronics recovered from earlier losses to increase by 0.19%, while South Korea’s benchmark KOSPI experienced a rise of 0.68%. In Japan, chip-making equipment manufacturer Tokyo Electron and memory chip producer Kioxia overcame losses, increasing by 0.47% and 0.65%, respectively.

Chip-testing equipment manufacturer Advantest reduced its losses, concluding the day down 0.14%. The S&P 500 and Nasdaq concluded the trading session on Monday with declines, primarily influenced by the performance of technology stocks. Investors are currently assessing the implications of new U.S. economic sanctions against Iran while preparing for a week that features an important inflation report.

Quarterly results from chipmaker Nvidia are anticipated to serve as a significant catalyst for market movements. Any indication of decelerating growth may rekindle apprehensions regarding inflated valuations. Shares of Nvidia declined for the seventh consecutive session. The shipping sector, which was the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes, concluded with a decline of 0.91%.