FX168 Financial News Agency (Asia Pacific) reported that on Tuesday (January 7), Japan's stock market rose nearly 2%, ending two consecutive days of decline, with Semiconductor-related stocks following the USA counterparts' performance.

At the close, the Nikkei/Yen rose by 1.97%, closing at 40,083.3 points. The broad TOPIX index increased by 1.1%, closing at 2,786.57 points. The TOPIX core 30 index, composed of the 30 largest companies, rose by 1.75%, while the TOPIX small-cap index (excluding the top 500 stocks) edged up by nearly 0.1%. #Japan Market#

In the Main Board market of the Tokyo Stock Exchange, among over 1,600 stocks traded, 49% rose, 46% fell, and 4% remained flat.

The stock price of Semiconductor manufacturing equipment maker Tokyo Electron Ltd. Unsponsored ADR surged 11.25%, becoming the biggest driver of the Nikkei/Yen. Semiconductor testing equipment maker Advantest's stock price rose by 4.72%.

"The potential of large-cap stocks seems to become a market betting target, these stocks are usually favored by foreign investors," said Kentaro Hayashi, senior strategist at Daiwa Securities.

In the USA stock market, the S&P 500 index and Nasdaq Composite Index rose to a peak not seen in over a week, driven by the surge in Semiconductor stocks and a report indicating that the Trump administration might adopt a more moderate tariff policy than expected.

Other notable rising stocks included Semiconductor manufacturer Renesas Electronics, whose stock price rose by 7%, and Semiconductor manufacturing equipment supplier DISCO, whose stock price climbed by 7.5%.

As Japanese government bond yields rose, bank stocks also gained, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial rising by 3.28% and 2.25%, respectively.

The entertainment company Konami fell by 1.47%, which had a significant drag on the Nikkei/Yen.

The stock price of the steel company Nippon Steel dropped by 1.52%. The company's CEO stated on Tuesday that despite the challenges, the company will never abandon its plans to expand into the USA market. Nippon Steel filed a lawsuit on Monday, accusing President Joe Biden of illegally blocking its acquisition of United States Steel for $14.9 billion through a false national security review.