Tokyo: Japan's Nikkei share average closed at a record high on Tuesday for a third consecutive session, as chip-related stocks tracked upbeat US peers, though the initial momentum eased after traders booked profits from a recent rally.

According to Qatar News Agency, the Nikkei held its ground at 47,950.88. Earlier in the session, the index rose 1% to a record high of 48,527.33. The broader Topix edged 0.06% higher to 3,227.91. The Nikkei surged 4.8% in the previous session, marking its biggest single-day gain since early April.

Chip-testing equipment maker Advantest rose 0.64%, while SoftBank Group, an investor in AI-related firms, climbed 1.11%, becoming the biggest boost for the Nikkei. Cable maker Fujikura, seen as a bellwether for data center investments, jumped 5.4% to become the top percentage gainer in the Nikkei. Chip-making equipment maker Tokyo Electron reversed early gains to close the trade 1.6% lower.

The S and P 500 and the Nasdaq reached record closing highs in the overnight session. Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 46% fell, 49% advanced, and 4% traded flat.