Japan's Topix Index eked out a small gain after paring most of its earlier rise, as a fall in US futures added to worries about Donald Trump's upcoming reciprocal tariffs. 

Topix rose 0.1% to 2,661.73 as of market close in Tokyo, after rising as high as 2,697.33 in morning trade

Nikkei was virtually unchanged at 35,624.48

Drugmakers and trading houses contributed the most to the Topix's advance, while banks and electronics makers were the heaviest drag.

"There's noticeable selling in sectors seen as sensitive to the economy, such as banks and tech," as concerns about "intensifying trade friction and a slowdown in the economy" build, said Maki Sawada, a strategist at Nomura Securities. Stocks focused on domestic demand, like real estate, are solid, she added.

"There's a feeling that yesterday's selloff was a slight overreaction," leading to some buying Tuesday, said Hiroshi Namioka, chief strategist at T&D Asset Management. But with a fall US futures denting sentiment, the rebound is limited, he said.

Pharmaceutical firms helped lift the broader Topix, with Daiichi Sankyo climbing 6% after it said human trials using one of its drugs to treat gastric cancer were underway. 

A report that Warren Buffett's Berkshire Hathaway is planning to sell yen bonds in global markets is also likely supporting shares, Namioka said. "It's like a seal of approval for Japan's market," which is welcome news amid fears about tariffs, he said.

The five trading houses in which Berkshire owns stakes outperformed the Topix on Tuesday.

Source: Bloomberg