Nikkei 225 Breaks 70,000 on Wall Street Rally and Cheaper Oil

Japan's Nikkei 225 stock index closed above 70,000 on Tuesday, marking a three-month high. The index rose 737.12 points, or 1.05%, to end at 70,683.98, building on a 2.4% gain from Monday. This was the index's second straight day of strong performance, with broad gains across various sectors including real estate, banking, and textiles.

The rally was driven by positive cues from Wall Street, where the Nasdaq hit a record high and the S&P 500 rose 0.66%. Lower oil prices also boosted investor sentiment, with U.S. crude falling about 2% to around $89 a barrel. Japan, which imports nearly all of its oil, benefits from cheaper crude prices.

Technology stocks saw mixed results, with electronic component maker Taiyo Yuden leading gains at 6.15%. In contrast, SoftBank Group fell 2.7% as investors took profits after recent gains. The Nikkei Volatility index rose 1.28% to 22.87, reflecting market expectations of continued swings.

Investors are also watching the Japanese government bond market, where yields have climbed to multi-decade highs. The 10-year yield hit 3% last month, driven by inflation concerns and expectations of faster rate hikes by the Bank of Japan. Attention now turns to Bank of Japan Governor Kazuo Ueda's speech for clues on future monetary policy.