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

Tokyo bore the news of a soaring Nikkei share average on Tuesday, driven by Wall Street advances and a dip in crude oil prices. The Nikkei climbed 0.2% to close the morning at 70,081.53, while the broader Topix rose 0.4% to 4,163.61. Out of the 225 components comprising the Nikkei, 140 gained value, 82 declined, with the remaining three standing still.

Among the components, Japanese tech firms experienced varied fortunes. Chip-equipment giant Advantest surged 1.7%, while AI-focused venture capital firm SoftBank Group shed 2.7%. Strategist Wataru Akiyama noted that individual stock valuations are being judged against their present share prices. However, the dip in crude oil prices has undoubtedly played a role in Japan's economy, which relies heavily on imported energy, especially from the Middle East.

Investors will also closely monitor the outcome of a 10-year Japanese government bond auction later in the day, given the elevated yields and concerns over Prime Minister Sanae Takaichi's expansionary fiscal policies. Furthermore, Bank of Japan Governor Kazuo Ueda's speech, scheduled after the market's close, may provide insights into the possible scope of forthcoming interest rate hikes.