Japan's benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended up 379.67 points, or 1 percent, from Monday to close the day at 38,482.11.
Market watchers believe that the initial buying momentum was driven by the overnight positive performance of U.S. stocks, leading to widespread buying in Tokyo, but the upward momentum was tempered by profit-taking and selling from investors waiting for a rebound.
It was noted that political uncertainties in Europe remain a lingering concern, and that Tuesday's gains were seen as mainly a technical rebound.
Analysts also pointed out that overseas investors may hesitate to actively buy Japanese stocks ahead of the Bank of Japan's next monetary policy meeting at the end of July, where policy normalization is expected to be discussed.
The broader Topix index also ended higher, rising 15.75 points, or 0.58 percent, to 2,715.76.
On the Prime Market, advancing issues outnumbered declining ones by 1,178 to 418, with 50 issues remaining unchanged.
Issues of TDK, Nintendo, and Mitsubishi Heavy Industries were among notable gainers, while Takeda Pharmaceutical, Daiichi Sankyo, and Seven & i Holdings declined.
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