Japan's Nikkei 225 rose sharply on Tuesday, ending a three-session losing streak as chip-related heavyweights rallied on renewed enthusiasm for artificial intelligence.

The Nikkei closed up 1,078.72 points, or 1.73%, at 63,268.37. It rebounded from Monday's close of 62,189.65, its lowest since late July. The index rose as much as 2.4% earlier in the session.

The broader Topix index rose more modestly and hovered near the 4,000 mark, which shows the gains were concentrated in a handful of large technology stocks.

Semiconductor-related shares drove the rally:

Advantest: The chip-testing equipment maker surged about 10% in morning trade, making it the biggest contributor to the Nikkei's gain. SoftBank Group: The technology investor, a major backer of AI companies, rose about 6% to 7%. Kioxia: The flash memory maker jumped nearly 8% in morning trade. Tokyo Electron: gained about 4.5%. Screen Holdings: rose about 5%.

The gains mirrored a strong session on Wall Street, where the Philadelphia Semiconductor Index rose 2.8% on Monday. The Nikkei........

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