Japan’s Nikkei rebounds on optimism of limited hit from Middle East conflict

Japan’s Nikkei share average rebounded on Tuesday, gaining 0.9% following a steep drop the previous day. The rebound was influenced by positive cues from Wall Street and optimism that the Gaza conflict would not heavily impact markets. Tech stocks, which had been sold off aggressively, rebounded strongly. Additionally, a decline in crude prices boosted sentiment as Japan is a major energy importer. However, analysts warned against complacency, stating that the risks of a full-on invasion in Gaza still loomed. Japanese chip stocks, including Tokyo Electron and Advantest, were standout winners.