Markets in the Asia-Pacific region traded mixed on Tuesday, with investors remaining cautious amid a lack of fresh drivers and following the holiday lull stateside. In Japan, BoJ Deputy Governor Himino reiterated the bank’s stance on raising interest rates in accordance with improvements in the economy and prices, but noted high uncertainty.

In Europe, equity futures indicated a slightly softer cash market open, with the Euro Stoxx 50 future down 0.2% after the cash market closed with gains of 0.3% on Monday. The DXY was higher, while the JPY lagged and the EUR/USD reverted back onto a 1.16 handle. Antipodeans also saw a soft tone alongside the risk-off sentiment.

Bunds were subdued following the prior day’s retreat, while crude futures extended their gains from the previous day. Spot gold hit a fresh record high above USD 3.500/oz.

Looking ahead, several economic data releases are scheduled for this week, including the European Flash HICP (Aug), US ISM Manufacturing PMI (Aug), Atlanta Fed GDP, and speeches from ECB’s Elderson & Nagel. Supply from Germany is also expected to be a key focus.

It’s worth noting that market sentiment can be unpredictable and influenced by various factors, including economic data, geopolitical events, and investor sentiment. As such, it’s important for investors to stay informed and up-to-date on the latest developments to make informed investment decisions.