Asian stocks gain as crude retreats; yen volatile ahead of BOJ decision

Asian stock markets moved higher Tuesday as crude oil prices retreated from recent levels, providing relief to energy-importing economies across the region. The broader risk-on sentiment supported equity valuations, though trading remained cautious ahead of key monetary policy decisions in Japan.

The Japanese yen fluctuated against major currencies as investors positioned ahead of the Bank of Japan's policy meeting, where the central bank is expected to lift rates to their highest level in 31 years. The anticipated move reflects the BOJ's gradual shift toward monetary tightening as inflation pressures persist across the Japanese economy.

Crude oil prices declined, easing concerns about elevated energy costs that have weighed on regional inflation expectations and corporate margins. The pullback in petroleum prices provided a supportive backdrop for equity markets, particularly benefiting sectors sensitive to energy costs.

Traders remained focused on the BOJ's policy announcement and accompanying guidance, with the rate decision expected to influence currency movements and set the tone for regional monetary policy discussions. The central bank's messaging on future rate adjustments is likely to shape near-term market sentiment across Asia.