Japan's Nikkei 225 share average rose on Tuesday as markets reopened following a holiday, with investors capitalizing on lower valuations after the benchmark index suffered its steepest weekly decline in more than a year.
The rebound reflects a shift in sentiment as traders look to buy the dip, signaling that the recent sell-off may have been an overreaction to broader market volatility.
The rally was broad-based, driven by bargain-hunting activity across multiple sectors.
However, the focus is now turning to the technology sector, where upcoming earnings reports are expected to play a pivotal role in determining the index's near-term trajectory.
Investors are closely watching for signs of resilience in tech stocks, which have been a key driver of the Nikkei's performance in recent quarters.
This development comes after a period of heightened volatility, with the Nikkei experiencing significant swings in recent weeks.