Global Market: Japan's Nikkei rebounds as bargain buying lifts stocks after sharp weekly selloff

Japan's benchmark Nikkei share average rose on Tuesday as investors returned from a market holiday and snapped up beaten-down stocks following the index's steepest weekly decline in more than a year, as per a Reuters report.

The Nikkei 225 advanced 1.25% to 64,945.96 in early trade, recovering part of last week's 6.4% slide. The broader Topix index also gained 1.33% to 3,971.20.

According to Reuters, the rebound came despite cautious global sentiment after Wall Street ended slightly lower on Monday as escalating tensions in the U.S.-Iran conflict pushed oil prices higher, raising concerns over inflation and economic growth.


Market participants are now shifting their focus to the upcoming second-quarter earnings season, with results from major U.S. technology companies including Alphabet, Tesla and Intel expected later this week. Reuters reported that investors are looking for earnings updates to gauge the outlook for artificial intelligence-related stocks, which have come under pressure in recent sessions.

Analysts said Tuesday's gains largely reflected a technical rebound after the sharp selloff, while caution persisted ahead of key corporate earnings in both Japan and the United States.

Market breadth was firmly positive, with 196 of the Nikkei's 225 constituents trading higher, while only 28 stocks declined.

Among the top gainers, chipmaker Kioxia Holdings surged 5.89%, followed by cosmetics company Shiseido, which rose 5.78%, and heavy machinery manufacturer IHI, up 4.14%.

On the downside, Nintendo was the biggest laggard, falling 3.91%. Tech materials supplier Sumco declined 3.45%, while camera maker Nikon slipped 2.18%.