Japan's Nikkei 225 rose 1.1% to close at 70,683.98, finishing above the 70,000 level for the first time since July 1 despite ongoing uncertainty from the Iran conflict. According to Sina Finance, electronics and metal stocks led gains on expectations of rising demand tied to artificial intelligence, with Advantest up 3.8% and Fujikura up 5.2%.

The dollar was quoted at 158.21 yen. Investors were watching developments in the Middle East and oil prices.

Bank of Japan Governor Kazuo Ueda reiterated the central bank's stance, saying it is important to keep core inflation stable around 2% and that the bank will continue raising rates based on economic, inflation, and financial conditions. According to Sina Finance, Ueda said Japan's economy was moving in line with the Bank of Japan's expectations and warned of a risk that price trends could rise and break above the central bank's 2% target.

Japan's Ministry of Finance raised the coupon rate in its 10-year bond auction on the 6th to 3.1% from 2.7% for July to September, the highest level since an auction on August 21, 1996. The bonds will be issued on the 7th.