The Nikkei 225 Index surged 1.6% to around 39,150, while the broader Topix Index rose 1.4% to 2,757 on Tuesday, recouping some of the losses from the previous session.

This bounce followed U.S. President Donald Trump's decision to pause tariffs on Mexico and Canada after discussions with their respective leaders.

However, the U.S. is still expected to implement the proposed 10% levy on imports from China, continuing the trade policies seen during Trump's first term. In Japan, investors are focusing on Wednesday's release of the latest wage figures, which could influence the outlook for the Bank of Japan's monetary policy.

The BOJ raised interest rates in January and indicated readiness to hike further if economic and price trends align with its forecasts. Technology and export-heavy companies led the charge, with notable gains from Advantest (up 4.8%), Lasertec (up 5%), IHI Corp (up 2.2%), Mitsubishi Heavy Industries (up 2.5%), and Toyota Motor (up 3%).

Source: Bloomberg