| Japan's Nikkei 225 fell 0.6% on Tuesday, pulling back from recent highs as investors reacted to the Bank of Japan's latest policy decision. The central bank kept its interest rate unchanged at 0.75%, as expected, but raised its inflation forecast while cutting its FY2026 growth outlook, citing risks from the Middle East conflict. Notably, some policymakers signaled a preference for future rate hikes, reflecting rising concern about inflation. Geopolitical tensions also remained in focus, with uncertainty lingering despite a new proposal from Iran to the US, as disagreements over its nuclear program continue. Technology stocks led the market decline. Advantest dropped sharply despite reporting strong earnings, while SoftBank Group fell nearly 10% amid fresh worries about the AI sector. Other major stocks, including Hitachi, Tokyo Electron, and Fanuc, also posted notable losses, adding to the broader market weakness. |