TOKYO: Japan’s Nikkei share average rose on Tuesday as semiconductor-related shares climbed on the back of a strong overnight performance by their US peers on Wall Street.

The Nikkei was up 1.7% at 39,183.16, as of 0209 GMT, while the broader Topix climbed 1.3%.

The Nasdaq and the S&P 500 indexes scored record closing highs on Monday, boosted by tech-related shares following the market’s strong November gains.

The Philadelphia SE Semiconductor Index added 2.6%. Japan’s major technology shares followed suit, with shares of chip-making equipment giant Tokyo Electron up 4.1%, contributing 95 points to the Nikkei’s nearly 671-point gain.

AI-focused startup investor SoftBank Group rose 3.7% and chip-testing equipment maker Advantest gained 3%.

Shares of fellow chip-related firm Disco Corp surged nearly 7%, while peer Screen Holdings was up 5.4% to land them among the Nikkei’s best performers by percentage.

Lasertec was up 5.5%. Gains were broad across the Nikkei’s 225 constituents as investor sentiment improved, with 192 shares advancing and 30 declining, while three shares remained untraded.

“Last week, Japan’s stock market saw caution about news related to tariff increases under the incoming Trump administration,” said Maki Sawada, a strategist at Nomura Securities.

Japan’s Nikkei erases losses to end higher

Losses were concentrated among economically sensitive sectors, she said, adding that this week though investors appear to be buying back those shares.

Shipping and electric machinery, both considered to be cyclical sectors, were among top performers on the Tokyo Stock Exchange’s 33 industry sectors.

Shipper Kawasaki Kisen Kaisha advanced 5.4%.

Among other major shares on Tuesday, Uniqlo parent firm Fast Retailing rose 1.8% to add support to the overall index, and semiconductor silicon wafer maker Shin-Etsu Chemical added 2.2%.

Automakers Toyota Motor and Honda Motor gained 1.3% and 1.4%, respectively.