Mumbai, July 21 -- Japanese stocks rallied on Tuesday, with the Nikkei 225 surging 3.26% and the broader Topix Index rising 2.44%, as investors returned from a long holiday weekend and bought back shares after last week's sharp decline.

Technology stocks led the market higher as selling pressure on semiconductor and artificial intelligence-related companies eased. The improvement followed overnight gains in US chipmakers, which lifted sentiment across the sector. Kioxia Holdings jumped 17.2%, while Advantest gained 7.7%, Taiyo Yuden rose 6.4%, SoftBank Group advanced 6%, and Tokyo Electron added 2.3%.

Financial and consumer stocks also posted solid gains. Mitsubishi UFJ climbed 3.1%, Sumitomo Mitsui rose 3.4%, and Fast Retailing gained ...