The 225-issue Nikkei Stock Average closed at a fresh high in Tokyo as strong earnings from the tech and finance sectors drove optimism, and as a recovery in gold prices revived risk appetite across Asia.

The Nikkei rebounded from Monday’s drop to rise 3.9%, closing at a record 54,720.66. The broader Topix index also advanced 3.1%, marking the biggest gain for both benchmarks since Oct. 6.

Tech-related firms like TDK and Kyocera were among the Nikkei’s top gainers after their quarterly earnings exceeded market expectations. Artificial intelligence names such as Fujikura and Ibiden were also strong amid widespread risk-on sentiment.

Banks helped support the Topix, with Mizuho Financial Group climbing 6.1% after its profit beat estimates and Japan’s third-largest lender expanded its share buyback program.

“All caution seems to have vanished,” said Kazuhiro Sasaki, head of research at Phillip Securities Japan. “The yen is considerably weaker than last week, Japan’s ruling party looks on track to win big in the election, and earnings from key sectors like semiconductors appear strong,” he said, referring to the snap vote on Feb. 8.

Relative calm in the precious metals market after the weekend’s rout is also bolstering investor confidence, Sasaki added.

Better-than-expected data on U.S. manufacturing activity also fueled market sentiment, wrote Andrew Jackson, Japan equity strategist at Ortus Advisors, in a note. Risk is “back on the menu” now, especially for tech names after gains in the U.S. on Monday, he said.

Strong earnings from AI-related Japanese firms boosted the benchmarks further in the afternoon session. Cable maker Sumitomo Electric Industries gained as much as 15% after raising its full-year income forecast in results released at 3 p.m.