Mumbai, April 28 -- 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 S...