Global Markets React to Interest Rate Expectations and Geopolitical Developments

Asian stocks dipped on Tuesday, contrasting with gains in the U.S. amid investor optimism about corporate earnings. The dollar remained strong, influenced by expectations of a smaller U.S. rate cut next month. Oil prices fell following reports that Israel may target Iranian military rather than nuclear sites.

Asian stock markets saw declines on Tuesday, diverging from a rally in the U.S., where investor sentiment was buoyed by positive corporate earnings. The dollar remained near a two-month high, bolstered by anticipation of a smaller rate cut by the Federal Reserve in the coming month.

Oil prices dropped by approximately 3%, following news reports indicating Israeli assurance to the U.S. that it would target Iranian military operations rather than nuclear facilities, potentially reducing fears of immediate oil supply disruptions.

Meanwhile, the Nikkei index climbed over 1% to reach a new three-month high, while MSCI's broad Asia-Pacific index excluding Japan declined by 0.26%. This mixed performance was partly driven by drops in Chinese stocks, as Beijing held back on announcing fresh stimulus measures.

(With inputs from agencies.)