TOKYO: Japan’s Nikkei share average rose on Tuesday, as advances in bank and chip-related stocks offset selling, driven by declines in Hong Kong and other regional equity markets.

The Nikkei added 0.32% to close the day at 32,493.89, after investors returned from a three-day weekend in Japan. The index rose as much as 1% in the morning, tracking gains on Wall Street, but equity weakness after Chinese markets opened saw the Nikkei dip into the red in the early Tokyo afternoon.

Financials led gains on the Tokyo Stock Exchange (TSE), rallying 2.18% to far outpace any of the other 32 industry sectors.

That followed rallies for US peers in recent sessions, while some also pointed to the tailwind from increased speculation that the Bank of Japan might make a hawkish policy tweak next week.

Chip-making equipment giant Tokyo Electron provided the most support to the Nikkei, adding 20 index points with a 1% rise. It had earlier rallied as much as 3%.

Japan’s Nikkei tracks Wall Street higher on boost from chip-related stocks

The broader Topix advanced 0.59% to 2,252.28.

The Nikkei has been recovering since the middle of last week from a 5.4% retreat after reaching a 33-year closing high of 33,753.33 on July 3. Nomura Securities expects the Nikkei to range between 32,000 and 33,000 this week.

“I can’t say categorically that a break above 33,000 won’t happen, but the odds are extremely low,” said Nomura strategist Kazuo Kamitani.

“In the absence of any clear driver, an approach of 33,000 is going to make the Nikkei feel extremely heavy.”

Chip-testing equipment maker Advantest ended with a 0.6% gain after earlier surging as much as 3%. Chipmaker Renesas Electronics climbed 2.34%. Sony Group was another standout winner, gaining 2.56%.

The biggest decliner was internet company Rakuten Group , which slumped 6.16%.

The stock had rallied about 20% since late June to reach a one-month high in the previous session.