The Nikkei 225 Index rose 0.5% to above 48,850 while the Topix Index gained 0.2% to 3,305 on Tuesday, recouping losses from the previous session as markets reopened after a holiday-extended weekend. Japanese shares followed tech-led gains on Wall Street overnight amid renewed optimism around artificial intelligence and rising hopes for a Federal Reserve interest rate cut in December. Technology stocks outperformed locally, with strong gains from Advantest (4.4%), Fujikura (3.8%), Tokyo Electron (2.8%), Recruit Holdings (1%) and Keyence (0.5%). A weaker yen also supported sentiment, improving the earnings outlook for Japan’s export-heavy industries. Still, markets remained alert after a series of verbal interventions from Japanese authorities heightened speculation about possible official support, with upcoming US holidays viewed as potential windows for action.