The Nikkei snapped two straight sessions of losses to end 0.64% higher at 40,549.54.
The broader Topix climbed 0.7% at 2,936.54.
On Monday, all three major U.S. stock indexes logged their steepest daily percentage climb since May 27, as investors sought bargains after Friday’s selloff and ramped up bets for a September rate cut following a weaker-than-expected jobs data.
In Japan, Mitsubishi Heavy Industries jumped 5.72% as the heavy machinery maker clinched a landmark A$10 billion ($6.5 billion) deal to build Australia’s next-generation warships.
Technology investor SoftBank Group rose 2.68% to lend the strongest boost to the Nikkei. Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s (TSE) prime market, 74% rose, 21% fell and 3% traded flat. All but three of the TSE’s 33 industry sub-indexes advanced, with the nonferrous metals sector climbing 3.68% to become the top-performing sector.
Cable maker Furukawa jumped 7%, and its peers Sumitomo Electric and Fujikura rose 4.9% and 3.94%, respectively, reflecting expectations for robust investments in data centres.
Chip-making equipment maker Tokyo Electron fell 0.4% and chip-testing equipment maker Advantest pared losses to end flat.
“Those shares led the Nikkei’s rally last month, but so far they have lost that strong momentum,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Markets were jolted last week when shares of Tokyo Electron plunged, hitting their daily limit, after the firm slashed its profit forecast by a fifth.
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