The Nikkei 225 Index climbed 0.85% to close at 53,333, while the broader Topix Index rose 0.31% to 3,564 on Tuesday, snapping a two-day decline as risk sentiment improved, with technology shares leading the rebound.

Japanese equities had come under pressure earlier in the week after the yen rallied about 3% amid concerns over a potential coordinated intervention between Tokyo and Washington to support the currency.

Sentiment has since stabilized, with investors now looking ahead to the lower house snap election in less than two weeks for greater clarity on the policy outlook.

Technology shares outperformed on expectations that domestic firms will benefit from the global shift toward artificial intelligence.

Strong gains were seen in Kioxia Holdings (5.7%), Advantest (5.9%), Disco Corp (3.7%), Lasertec (3.4%) and Tokyo Electron (2.5%).