Investors monitored geopolitical developments in the Middle East, with the US suggesting a potential agreement with Iran, although Iran denied direct negotiations. Domestically, Japan's current account surplus narrowed in June due to strong exports of AI-related products being offset by increased imports, especially crude oil. Technology and AI-linked stocks surged, with shares of Fujikura, Advantest, Tokyo Electron, Furukawa Electric, and Ibiden showing strong gains. Consumer-focused stocks also performed well, while financial stocks lagged and ended lower.