Asian stocks traded mostly flat to lower on Tuesday as geopolitical tensions and central bank uncertainty kept investors cautious. Markets remained jittery after U.S. President Donald Trump called for the evacuation of Tehran, escalating fears of deeper U.S. involvement in the ongoing Iran-Israel conflict. Although the White House clarified it had no immediate plans for military action and was pushing for a ceasefire, the conflict entered its fifth day with no resolution in sight.
Adding to the unease, traders are bracing for several major central bank decisions this week. Most notably, the Bank of Japan is set to announce its interest rate decision later today, with expectations it will hold rates at 0.5%. However, investors are wary of potential hawkish commentary from Governor Kazuo Ueda amid persistent inflation in Japan. The BOJ is widely expected to raise rates in July if the inflation trend continues.
Japanese stocks outperformed the region, with the Nikkei 225 up 0.5% and the TOPIX gaining 0.2%, supported by tech shares and a weaker yen boosting exporters. In contrast, China’s Shanghai Composite and CSI 300 dropped 0.3%, while Hong Kong’s Hang Seng fell 0.4%.
South Korea’s KOSPI rose 0.5% on tech sector strength, extending gains amid hopes for political stability. Australia’s ASX 200 slipped 0.1%, and Singapore’s Straits Times Index climbed 0.4% despite a surprise contraction in May exports. India’s Gift Nifty 50 Futures edged down 0.1%, indicating a possible pullback after Monday’s rally.
Global markets are also awaiting the U.S. Federal Reserve's rate decision on Wednesday, alongside moves from the Swiss National Bank, Bank of England, and the People’s Bank of China—making this a pivotal week for financial markets.


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