Japanese equities surged on Tuesday as chipmakers tracked overnight gains on Wall Street after Advanced Micro Devices secured a landmark partnership with OpenAI.

The Nikkei 225 climbed 336.4 points to 47,944.76.

The rally was further supported by Japan's household spending, which rose for a fourth consecutive month in August, gaining 2.3% year-on-year amid higher outlays on transport and entertainment.

Investors also braced for a 30-year government bond auction after newly elected Japan leader's Sanae Takaichi's pro-stimulus victory in the ruling party leadership race boosted longer-term yields.