Asian markets extended tech-led gains Tuesday with Japan's Nikkei surging 3% to a record high of 57,960 points, while the broader TOPIX jumped 22% to 3,863.90. The regional rally followed Wall Street's overnight gains, where U.S. stocks ended modestly higher, with the Nasdaq outperforming peers.

Prime Minister Sanae Takaichi's decisive election victory sparked the "Takaichi trade," as markets welcomed her pro-business reforms and fiscal expansion plans. Analysts expect her administration to boost capital investment and support strategic industries, reinforcing responsible but expansionary fiscal spending with a more Japan-focused foreign policy.

Technology stocks across Asia continued their recovery after last week's sell-off, with South Korea's Kospi gaining 0.5% and Hong Kong's Hang Seng advancing 0.5%. Investors now await U.S. economic data later this week for additional clues on interest rate trajectories and global growth prospects.