The Nikkei index erased early losses to rise 0.3% to 68,774.71 points as optimism surrounding artificial intelligence outweighed Middle East tensions. SK Hynix's historic debut on the US market helped restore investor interest in AI-related trades.

"The semiconductor theme is a supportive element," stated Taylor Nugent, a senior economist at National Australia Bank, in commentary. Among the best-performing constituents of the Japanese benchmark index, Lasertec gained 4.9%, Furukawa Electric rose 4.3%, and Tokyo Ohka Kogyo increased by 4.05%.

However, gains in Japanese equities may be limited following the US announcement of a new round of strikes against Iran on Sunday night.