Asia Stocks Retreat as Iran Deal Optimism Fades
Asian stocks retreated on Tuesday after investors' initial excitement over the U.S.-Iran peace deal began to fade. The deal, announced by President Donald Trump, had led to a rally in global markets on Monday, with the S&P 500 jumping 1.7% and the Nasdaq Composite surging 3.1%. However, analysts warned that the durability of the deal is likely to be tested in future negotiations.
The Bank of Japan's decision to raise interest rates to a 31-year high on Tuesday is also weighing on investors' minds. Deputy Governor Shinichi Uchida will hold a press briefing after the meeting, which Governor Kazuo Ueda will miss due to medical treatment. Analysts from Mitsubishi UFJ expect no major changes to the Bank's assessment of current conditions.
The Reserve Bank of Australia is expected to pause its tightening cycle when it meets later this week, according to a Reuters poll of economists. The U.S. dollar index held steady at 99.69, while gold inched 0.1% higher to $4,311.12 an ounce.
Crypto markets were also affected, with Bitcoin down 0.3% at $66,281.99 and Ether slumping 1.3% to $1,791.39.