Japanese stocks rose to end six days of declines as automakers and semiconductor-related names gained on a weaker yen. Banks also pushed the market higher as traders weighed the prospect of higher interest rates.

The Topix index was up 0.9% at 2,726.74 by the close.

The Nikkei gained 1.2% to 39,161.34.

Toyota Motor contributed the most to the Topix's gains, rising 2.4%, while peer Honda Motor also advanced. Honda and Nissan Motor are looking to complete a merger agreement as early as June after negotiations began on Monday, and could merge by 2026, Japanese media reported, citing unnamed sources.

Meanwhile, Masahiro Yamaguchi, a senior market analyst at SMBC Trust Bank, said that "Traders are looking for Japan-specific clues to trade stocks," lenders rose but "the BOJ's cautious stance on rate hikes could weigh on bank stocks."

Of the 2,125 stocks on the Topix, 1,409 rose and 620 fell, while 96 were unchanged.
Source: Bloomberg