Asian stocks climbed Tuesday, driven by a sustained technology rally and renewed optimism over artificial intelligence. Japan’s Nikkei 225 surged over 3% to a record high, catching up after a long weekend. The rally was fueled by reports that Prime Minister Sanae Takaichi plans to call a snap election, a move that could strengthen her parliamentary majority and unlock further fiscal stimulus measures.

Investors looked past ongoing diplomatic tensions between Japan and China, focusing instead on the prospect of increased government spending. The positive momentum spread across the region. Hong Kong’s Hang Seng index rose to a two-month high, buoyed by strong performances from Chinese AI firms.

GigaDevice Semiconductor jumped over 50% on its debut, while recent listings like Z.ai and MiniMax also gained. Meanwhile, South Korea and Australia posted solid gains. Indian markets edged lower despite cooler inflation data, as traders weighed potential U.S. trade tariffs.

The broad regional advance mirrors Wall Street’s recent strength, where tech stocks pushed major indices to new records despite political friction.