Japan's Nikkei 225 Stock Average climbed nearly 4% on Tuesday, closing at a fresh all-time high and reversing the previous trading day's losses, as the sell-off in precious metals temporarily abated.

The Nikkei index surged 3.92% to close at 54,720.66 points, marking its largest single-day percentage gain since October 25. The index had surrendered its early gains to finish down 1.25% on Monday, pressured by a sharp decline in precious metal prices. On Tuesday, the Topix index jumped 3.1% to settle at 3,645.84 points.

"While there were market concerns about the impact of the previous day's precious metals plunge on other assets, strong overnight performances in European and U.S. equities provided a positive cue," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. "This encouraged investors to actively buy stocks today." He noted that robust U.S. manufacturing data was well-received by the market and served as a catalyst for the Japanese stock market's advance.

Chip-testing equipment maker Advantest Corp. saw its shares surge 7.1%, while chip-making equipment manufacturer Tokyo Electron Ltd. climbed nearly 4.79%. Shares of electronic components maker TDK Corp. skyrocketed 11.43% after it raised its annual profit forecast through March. Conversely, Yamaha Motor Co. tumbled 10%, becoming the biggest percentage decliner on the Nikkei index, after the motorcycle manufacturer lowered its annual profit outlook through December.

Only 16 of the 225 components on the Nikkei index declined. Among the more than 1,600 stocks traded on the Tokyo Stock Exchange's main market, 84% advanced, 13% fell, and 2% ended the session unchanged.