Asian stocks were mixed on Tuesday amid elevated oil prices and lingering geopolitical uncertainty, while the Bank of Japan delivered a widely expected interest rate hold.
Wall Street ended slightly higher on Monday, with the S&P 500 and Nasdaq closing at fresh record highs, supported by gains in technology shares.
U.S. stock index futures traded little changed as of 23:39 ET (03:39 GMT).
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BOJ holds rates steady; Nikkei slips from record high The Bank of Japan held its short-term interest rate steady at 0.75%, in line with expectations, with the decision passed by a 6–3 vote.
The central bank reiterated that it will continue to raise interest rates in accordance with developments in the economy and the Middle East conflict, signaling a gradual normalization path.
The BOJ also said inflation expectations are likely to continue rising moderately, reinforcing market views that further tightening remains on the table later this year.
Japan's Nikkei 225 fell 0.7% to 60,107.50 points, after hitting a record high of 60,903.95 a day earlier.
The broader TOPIX index rose 0.8%.
KOSPI hits new record high; other markets subdued South Korea's KOSPI was an outlier, rising over 1% to a fresh record high of 6,712.73 points.
Elsewhere, regional sentiment was further weighed by persistently high oil prices, as little progress was seen in resolving the Iran conflict. Disruptions around the Strait of Hormuz have kept crude near multi-week highs, stoking inflation concerns and dampening risk appetite.
Technology stocks across Asia also retreated, tracking a cautious global tone ahead of key U.S. earnings and growing scrutiny over artificial intelligence-driven valuations.
A report by The Wall Street Journal said OpenAI has missed internal revenue and user growth targets ahead of a potential initial public offering, raising questions over near-term monetization in the AI sector.
China's Shanghai Composite index edged down 0.1%, while Hong Kong's Hang Seng slipped 0.7%.
Australia's S&P/ASX 200 fell 0.5%, while Singapore's Straits Times Index edged up 0.2%.
Futures tied to India's Nifty 50 declined 0.5%.
Globally, focus is now firmly on the U.S. Federal Reserve, which is set to announce its policy decision later this week.
