Tokyo: Japanese stocks rose on Tuesday as local bond yields retreated from elevated record levels, which boosted market sentiment, while ongoing concerns about valuations of stocks linked to artificial intelligence limited gains in the Nikkei index. The broader TOPIX index rose 0.5 percent to close at 3,423.25, near the record high it reached earlier this month at 3,434.60.

According to Qatar News Agency, the Nikkei index closed flat at 50,412.87 after losses in shares of Advantest, a maker of chip-testing equipment, hampered the advance of most stocks on the index. Of the Nikkei's 225 components, 162 stocks rose, 62 fell, and one closed unchanged. Advantest shares fell 1.9 percent, while shares of Tokyo Electron, a manufacturer of chip-making equipment, declined 0.5 percent. Shares of SoftBank Group, which focuses on artificial intelligence, also fell 0.5 percent.

The banking index rose 1 percent, the insurance companies index gained 1.4 percent, while shares of securities firms and other financial companies jumped 1.5 percent.