Asian equities traded mixed on Tuesday as rising crude oil prices and bond yields kept markets cautious ahead of monetary policy meetings in the United States and Japan.
US crude rose 1.27 per cent to $102.68 a barrel, while Brent crude gained 1.21 per cent to $106.96 amid renewed concerns over oil supplies from the Middle East.
The increase followed a new Houthi attack on Saudi Arabia on Monday. Saudi Arabia also blamed Iran-backed fighters in Iraq for an attack on the kingdom's east-west pipeline, infrastructure capable of carrying as much as 4 per cent of global oil supply. Gulf Arab states also postponed planned talks with Iran.
Asian Equities Trade Mixed
MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.12 per cent. South Korean equities fell 0.25 per cent, while Japan's Nikkei reversed early losses to gain 0.19 per cent.
Samsung Electronics declined 0.2 per cent, while Japan's Kioxia gained 3.3 per cent.
Fed Decision In Focus
The US Federal Open Market Committee begins its two-day policy meeting on Tuesday, with markets pricing in a 90 per cent probability of an interest-rate increase. A hike would be the Federal Reserve's first since mid-2023.
Bond yields have also moved higher. The benchmark 10-year US Treasury yield touched 5 per cent for the first time since 2023.
Germany's 10-year government bond yield climbed above 3.51 per cent, its highest level since 2009. Japan's benchmark 10-year government bond yield returned to 3 per cent.
Higher crude prices, rising government bond yields and upcoming monetary policy decisions in the US and Japan remain the key developments influencing Asian financial markets.