Japan's Nikkei share average rallied strongly on Tuesday amid earnings optimism, and following gains on Wall Street overnight that took the Dow and S&P 500 to record highs.
Japanese stocks dropped on Monday on disappointing earnings, with semiconductor-related shares among the hardest hit following a decline in U.S. tech peers on poor earnings and concerns about the Federal Reserve's tapering.
Japan's Nikkei rose on Tuesday, led by heavyweight technology stocks on the back of Nasdaq's overnight gains even as concerns prevailed ahead of the domestic earnings season starting next week.
Japanese shares slipped on Monday as investors booked profits following a rally over the past couple of weeks, but automakers gained after Toyota Motor hinted that it could still hit its full-year output plan despite chip shortages.