TOKYO: Japan's Nikkei share average climbed on Tuesday, powered by a rebound in technology stocks that have helped drive the gauge's record quarterly gains.
The benchmark Nikkei 225 advanced 1.36% to 70,416.02 in early trading. The index is poised for a 36% gain in the past three months, the sharpest quarterly advance in data going back to 1965. The broader Topix rose 0.73% to 4,010.88.
Japanese stocks tracked a positive tone in global equities after the United States and Iran agreed to halt hostilities and renew talks over the Strait of Hormuz. U.S. stocks ended sharply higher overnight, with the Dow hitting a record closing high.
"Reports that working-level talks between the U.S. and Iran are expected to take place should also provide support for stock prices," Sony Financial Group analysts said in a report. "However, as institutional investors are expected to adjust their portfolios ahead of the end of the quarter today, volatile price movements are possible."
On the domestic front, Japan's May industrial output data showed factory output rose 0.5% month-on-month, below expectations, while manufacturers forecast a stronger 3.7% increase in June. Foreign exchange is also in focus, with the yen falling to a 40-year low against the dollar overnight.
There were 149 advancers on the Nikkei 225 against 72 decliners, and three were unchanged.
The largest percentage gainers in the index were Rakuten Group, up 5.39%; Tokyo Electron, up 5.09%; and Fujikura, up 5.06%.
The largest losers were Archion, down 2.41%, followed by Takashimaya, 1.51% lower, and Shift , which lost 1.25%. - Reuters
