Daijiworld Media Network - Tokyo
Tokyo, Apr 28: Global stock markets held steady on Tuesday as investors weighed ongoing geopolitical tensions in the Middle East, while the Japanese yen strengthened slightly after the Bank of Japan kept interest rates unchanged.
The Bank of Japan maintained its short-term interest rate at 0.75 per cent, in line with expectations. However, three out of nine board members voted in favour of a rate hike, highlighting growing concerns over inflation driven by the ongoing conflict involving Iran.
Market participants are now awaiting comments from BOJ Governor Kazuo Ueda for further guidance on future policy moves.
The yen edged up to 159.21 against the US dollar, hovering close to the 160 level, which traders view as a threshold that could trigger intervention by Japanese authorities. Japan’s benchmark Nikkei index slipped 0.5 per cent after reaching a recent high.
In the broader region, MSCI’s Asia-Pacific index outside Japan dipped slightly but remained near record levels, while US markets showed modest gains, with the S&P 500 on track for strong monthly performance.
Geopolitical uncertainty continues to weigh on sentiment, particularly with stalled negotiations between the US and Iran. US President Donald Trump has reportedly expressed dissatisfaction with Iran’s latest proposal, prolonging the two-month conflict.
The situation has disrupted flows through the Strait of Hormuz, a key global energy route, pushing oil prices above $100 per barrel and fuelling inflation concerns worldwide.
Brent crude futures rose to around $109 per barrel, while US West Texas Intermediate hovered near $97, both significantly higher than pre-conflict levels.
Investors are also closely watching upcoming monetary policy decisions from major central banks, including the Federal Reserve, Bank of England, and European Central Bank, all of which are expected to keep rates unchanged but may provide insights into inflation outlooks.
Meanwhile, attention is turning to earnings reports from major technology companies such as Microsoft, Alphabet, Amazon, Meta Platforms, and Apple, which are expected to test the strength of the recent AI-driven market rally.
Analysts noted that while equity markets remain optimistic, signals from oil and bond markets suggest caution, with geopolitical developments continuing to play a critical role in shaping global financial trends.