The Nikkei 225 surged 1.3% above 38,000, while the broader Topix Index climbed 0.7% to 2,810 on Tuesday, with the latter approaching an eight-month high. The rally followed Wall Street's overnight gains, fueled by optimism that US President Donald Trump may take a more selective approach to tariffs.

Japanese stocks also benefited from a weakening yen, which boosts the outlook for export-driven industries and makes local assets more attractive to foreign investors. Meanwhile, minutes from the Bank of Japan's January meeting indicated that policymakers remain open to further interest rate hikes, depending on wage growth and inflation trends.

Export-heavy auto stocks saw strong gains, with Toyota Motor rising 3%, Honda Motor up 1.3%, and Suzuki Motor gaining 2.9%.

Source : Trading Economics