Japan's Nikkei buoyed by Wall Street gains, dip in crude oil

Japan's Nikkei share average climbed on Tuesday, propelled by overnight gains on Wall Street and a drop in crude oil prices. The Nikkei rose 0.2 percent to end the morning session at 70,081.53, while the broader Topix increased 0.4 percent to 4,163.61. Among the 225 components of the Nikkei, 140 rose while 82 fell, with three stocks remaining unchanged.

The surge in US indexes, particularly the tech-focused Nasdaq Composite, which hit a record high due to a rally in tech giants like Nvidia, contributed to the positive mood on Japanese markets. Japanese tech shares showed a mixed performance, with Advantest up 1.7 percent and AI-focused venture investor SoftBank Group down 2.7 percent.

Analysts say the assessment of individual stocks is being made based on whether they are overvalued or undervalued relative to their current share prices. The decline in crude oil prices is believed to be influencing market sentiment, given Japan's heavy reliance on imported energy, especially from the Middle East. Investors will also be monitoring the outcome of a 10-year Japanese government bond auction later in the day, as yields are at multi-decade highs due to concerns over Prime Minister Sanae Takaichi's expansionary fiscal policies.

Additionally, Bank of Japan Governor Kazuo Ueda's speech, scheduled after the market closes, may provide insights into the timing of further interest rate hikes.