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● LIVE Updated 5d ago · 15 sources tracked

Asia markets temper Iran deal optimism, BOJ hikes rates

Asian equities opened mixed Tuesday after a short-lived rally on U.S.-Iran deal news, with focus shifting to the Bank of Japan’s expected rate hike. Oil prices held near three-month lows as Strait of Hormuz transit confidence remains fragile. The Nikkei briefly hit 70,000 before settling lower post-decision. Investor sentiment has cooled from initial deal optimism amid lingering Middle East tensions.

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What changed

Markets have shifted from deal-driven gains to cautious positioning ahead of BOJ’s monetary policy move, with oil prices and Asian stocks reflecting heightened sensitivity to central bank actions.

Live updates

  1. Asia markets scale back Iran deal gains as BOJ rate hike looms

    Asian equities opened mixed Tuesday after a short-lived rally on U.S.-Iran deal news, with focus shifting to the Bank of Japan’s expected rate hike. Oil prices held near three-month lows as Strait of Hormuz transit confidence remains fragile. The Nikkei briefly hit 70,000 before settling lower post-decision. Investor sentiment has cooled from initial deal optimism amid lingering Middle East tensions.

    What's confirmed:

    • Asian stocks opened mostly flat to slightly higher Tuesday after a one-day rally triggered by reports of a preliminary U.S.-Iran peace deal, with initial excitement fading as investors turned to central bank decisions.
    • Japan’s Nikkei 225 briefly surpassed 70,000 for the first time in its history before settling lower following the Bank of Japan’s rate hike announcement.
    • Brent crude futures traded at $83.25 a barrel, up 0.1% from overnight lows, after hitting a three-month low the prior session as geopolitical risks in the Gulf remained unresolved.
    • The yen remained flat against the dollar immediately after the BOJ’s rate decision, with no immediate sharp movement despite the hike.
    • Tech stocks in Asia saw modest gains, driven partly by renewed investor interest in SpaceX-related equities, though broader market moves were subdued.
    • Rebuilding confidence in commercial shipping through the Strait of Hormuz could take weeks, according to industry sources in Asia and Europe.

    Still unconfirmed:

    • The U.S.-Iran deal may include unspecified concessions on nuclear inspections or sanctions relief, though no official details have been confirmed.
    • Wall Street could see stronger gains later Tuesday if Middle East tensions ease further, per some trading desks.
    • The BOJ’s rate hike may signal a more aggressive tightening cycle, though market reactions suggest limited immediate impact on global liquidity.
    confidence 88%