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TOKYO: Japan’s Nikkei share average rose on Tuesday, buoyed by Wall Street’s rally overnight, although concerns about big tech earnings and tensions in the Middle East capped gains.

The Nikkei ended the day up 0.3% at 37,552.16. Notching a second consecutive session of gains after slumping to a 10-week low on Friday.

Trading was choppy in Tuesday’s morning session, with the index gaining 1% before retreating briefly into negative territory. However, the afternoon was calm with the index tracking mainly sideways.

The broader Topix finished up 0.14%.

All three of the main US stock benchmarks rallied on Monday, rebounding from big losses the previous week.

However, Tesla shares dropped 3.4% following price cuts in a number of its major markets. The electric vehicle maker is one of the so-called Magnificent Seven group of tech giants that will report earnings this week, along with Meta Platforms, Alphabet and Microsoft.

“In terms of recent trends, Japan’s stock market appears to be heavily influenced by overseas factors,” said Shoki Omori, chief Japan desk strategist at Mizuho Securities.

“This week, not only will the Magnificent Seven release their earnings, but other major companies will as well,” he said.

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