Most Asian stocks moved in a flat-to-low range on Tuesday as investors remained on edge over the Iran-Israel conflict, especially after U.S. President Donald Trump called for the evacuation of Tehran.
Japanese stocks maintained their gains after the Bank of Japan left interest rates unchanged as widely expected. The central bank also outlined plans to slow its pace of tapering bond purchases from next year, heralding looser monetary conditions in the long term.
Regional markets largely brushed off a strong overnight lead-in from Wall Street, where U.S. benchmarks rebounded from Friday’s losses on strength in technology shares.
But S&P 500 Futures fell 0.4% in Asian trade, especially after Trump warned that Tehran should be evacuated, ramping up concerns over U.S. involvement in the conflict.
White House officials clarified that the U.S. was not planning to directly involve itself in the conflict, and that attempts at brokering a ceasefire were underway. But strikes between Israel and Iran showed few signs of stopping, as the renewed conflict entered a fifth consecutive day.
U.S. markets are also expected to be skittish before a Federal Reserve interest rate decision on Wednesday.
Japan stocks upbeat as BOJ holds rates, announces slower bond tapering
Japan’s Nikkei 225 and TOPIX indexes added 0.6% and 0.4%, respectively, on some gains in local tech stocks. Mild weakness in the yen also supported export stocks.
