Japanese stocks (as measured by the Topix) rise by 3% as worries about an increase in Fed interest rates subside.

• Blue chips also rise, but tech stocks have the most impact on the index. Nikkei

• Aizawa Securities said it was "still too early" to declare the US downturn over, and Japanese equities soared as a result, with the benchmark Topix increasing by 3 per cent.

As US Treasury yields fell, buyers bought growth companies, propelling tech shares to the forefront of the Topix's gains. As of 1:03 PM local time in Tokyo, the Nikkei 225 index had risen 2.8%, thanks to Fast Retailing Co. and SoftBank Group Corp gains.

After Australia's central bank announced a smaller-than-expected rate hike, Asian equities continued to rise in afternoon trading. Following a decline in the Institute for Supply Management's indicator of industrial activity, which indicated that the US economy might be slowing, the S&P 500 Index registered its most significant increase since July overnight.

According to Ikuo Mitsui, a fund manager at Aizawa Securities Group, "it is still too early to declare that the slump in the US market has actually ended," and Japanese stocks are still vulnerable to global market instability. He also mentioned business performance and the upcoming US midterm elections as potential future risk concerns.

Despite this, Mitsui believes that Japan's stock market has more to gain from the normalisation of demand than the United States and Europe stock markets.

The Yen dropping to a 24-year low has improved the earnings prospects for Japanese exporters, helping Japanese stocks outperform their US and global peers this year. The Fed's aggressive approach to inflation and the Bank of Japan's easy-money policy both contributed to market movements.

The Yen has witnessed its longest losing streak in history as the Bank of Japan and Federal Reserve differ.

S&P 500 and MSCI Asia Pacific are down more than 20% this year, whereas Topix is down less than 5%.Despite North Korea launching a missile over Japan for the first time since 2017, the market rose on Tuesday.