Global Market: Japan's Nikkei extends rally on AI boost, but US-Iran impasse weighs

Japan's Nikkei 225 advanced 0.59% to close at 70,474.96, with chip-related stocks leading gains amid AI optimism, though the index pared an earlier 2.7% surge. Geopolitical tension over the Strait of Hormuz weighed on sentiment after Tehran declined to meet US envoys, while the BoJ Tankan survey showed large manufacturer sentiment at its highest since 2018, though firms expect worsening conditions ahead due to Middle East conflict risks.