Asian markets closed mixed on Tuesday, with the Nikkei climbing despite shares of heavily weighted SoftBank tumbling around 10 percent after its $32 billion bid for a British chip firm.
Japan's benchmark Nikkei 225 beat its regional peers to close at a six-week high, up 225.46 points, or 1.37 percent, at 16,723.31, with stocks receiving a boost from a relatively weaker yen. The market was closed on Monday for a public holiday.
The broader benchmark shrugged off the sell-off in internet and telecommunications giant SoftBank, buoyed by advances in other heavily-weighted stocks including Fast Retailing, up 3.18 percent, and Fanuc adding 1.68 percent.
SoftBank shares closed down 10.32 percent at 5,387 yen, as investors reacted to the company's announcement on Monday that it had agreed to acquire British semiconductor firm ARM Holdings in a deal worth $32 billion.
SoftBank's chairman and chief executive, Masayoshi Son, said the timing of the bid to acquire ARM was not motivated by a weaker pound, after the British currency fell in the aftermath of the U.K.'s decision to leave the European Union. Instead, Son said, it was about taking advantage of the "paradigm shift" seen in the internet-of-things technology.
Some analysts believed the $32 billion price tag was a bargain for SoftBank.
"ARM's purchase is a coup," Amir Anvarzadeh from BGC Securities told CNBC's "Squawk Box" on Tuesday. "It's probably the best semiconductor-related company in the world. They have 95 percent market share [in the smartphone architecture market], all of the processes that go into mobile architecture."
Others were more skeptical.
For one, the deal appeared expensive, noted Peter Milliken, a research analyst at Deutsche Bank.
"While ARM appears an excellently positioned business, we fail to see synergies, and consider the 47 times estimated 2016 price-to-earnings to be too rich in a fast-changing sector," Milliken said.
He added that the deal will weigh on SoftBank's sum of the parts (SOTP) valuation as analysts are likely to value ARM at less than the deal price.
Milliken also cited fears that it would be difficult for SoftBank to manage the acquisition as the company would become a "high debt (but asset rich) company, exposed to difficult to model businesses such as ARM, Sprint and Asian internet, overlaid on a relatively easy to understand Japanese telco and portal."
Deutsche Bank downgraded SoftBank to Hold from a Buy rating.