• Asian stocks show mixed trading following the US-Iran peace deal announcement.
• Oil prices have settled at a three-month low, indicating market caution.
• The Bank of Japan is expected to raise interest rates to a 31-year high.

Asian stocks inched up on Tuesday, following a previous rally spurred by news of a peace deal between Iran and the United States. Investors are now focusing on key central bank decisions, notably from the Bank of Japan, which is anticipated to increase rates to a 31-year high. Recent trading shows a more measured tone as enthusiasm over the U.S.-Iran negotiations begins to fade, according to Reuters, Channel News Asia, and Bangkok Post.

Oil prices have reflected this cautious sentiment, settling at a three-month low. Brent crude futures saw a slight increase of 0.6%, reaching $83.74 per barrel. However, shippers in Asia and Europe noted that rebuilding confidence for transit through the Strait of Hormuz might take weeks. Analysts commented that while President Trump's announcement of a deal brought initial relief, it has also led to potential tensions with Israel. "The durability of the deal is likely to be tested", analysts from Westpac stated, as many critical issues remain unresolved, according to Reuters, Channel News Asia, and Bangkok Post.

In the background of these geopolitical developments, traders are awaiting significant monetary policy announcements from the Bank of Japan. Notably, Deputy Governor Shinichi Uchida is expected to provide clarity following the anticipated rate hike, as Governor Kazuo Ueda is absent due to medical treatment. Analysts do not foresee major changes to the assessment of current conditions but expect Uchida to present a rationale following Ueda's earlier comments, as noted by analysts from Mitsubishi UFJ, according to Reuters, Channel News Asia, and Bangkok Post.

Wall Street responded positively to the optimism surrounding the US-Iran deal, with the S&P 500 climbing by 1.7% and the Nasdaq Composite gaining 3.1%. Both the Dow Jones Industrial Average and the STOXX 600 enjoyed record highs as markets reacted to these developments. Investors are also focusing on the Reserve Bank of Australia's decision to pause its current tightening cycle, as per recent economist forecasts, according to Reuters, Channel News Asia, and Bangkok Post.

Meanwhile, the US dollar index remained steady at 99.66, within a tight trading range, while the yield on the US 10-year Treasury bond slightly increased to 4.475%. Gold prices also experienced minor movement, rising by 0.2% to $4,313.87. Cryptocurrencies saw bearish trends, with bitcoin decreasing by 0.3% and ether down by 1.2%, according to Reuters, Channel News Asia, and Bangkok Post.