Japan's Nikkei 225 share average staged a recovery on Thursday, snapping a three-day slide as investors rotated back into artificial intelligence-related equities.
The rebound was largely fueled by gains in the US technology sector, which provided a tailwind for Japanese tech names and helped stabilize sentiment after recent volatility.
However, the rally faced headwinds from the energy complex.
Higher oil prices, sustained by renewed hostilities between the United States and Iran, weighed on broader market mood.
The persistent risk premium in crude markets acted as a drag on consumer-facing sectors and logistics firms, limiting the upside for the wider index despite the strength in tech.
This dynamic underscores the ongoing tension between growth-driven tech rallies and supply-side risks in the energy market.