The Nikkei 225 Index rose 0.74% to close at 67,743 on Tuesday, reversing earlier losses as semiconductor and other technology stocks rebounded on bargain hunting. Japanese equities also diverged from the tech-led selloff on Wall Street overnight, where chipmakers came under pressure amid growing concerns over the sustainability of the artificial intelligence-driven rally. Leading technology gainers in Japan included Kioxia Holdings (3%), SoftBank Group (3.3%), Advantest (3.3%), SUMCO Corp (3.4%), and SCREEN Holdings (2.3%). Meanwhile, investors continued to monitor escalating tensions in the Middle East after President Donald Trump announced plans to reinstate a blockade on Iranian vessels transiting the Strait of Hormuz. The announcement drove oil prices sharply higher and revived concerns that central banks may need to raise interest rates to contain inflation.