Japanese shares opened sharply higher on Tuesday as investors returned after a public holiday and bought technology and industrial stocks following last week’s heavy decline.
The Nikkei 225 advanced strongly during early trading, briefly climbing by more than 2% and returning towards the 65,000-point level. The broader Topix also moved higher as gains spread across most sectors.
Semiconductor and artificial intelligence-related companies led the recovery. Kioxia Holdings and other technology shares attracted buyers following significant losses during the previous week, while industrial group IHI also strengthened.
The advance was partly driven by bargain hunting rather than a fundamental change in the economic outlook. Investors remain cautious about elevated energy prices, geopolitical tensions in the Middle East and the possibility of further volatility in global technology shares.
Attention is now turning towards major US corporate results, which could determine whether the technology sector’s rebound has sufficient momentum to continue.
Newshub Editorial in Asia – 21 July 2026
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