Stock market today: Asian stocks are mixed as the Bank of Japan keeps its monetary policy unchanged

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Asian stocks were mixed on Tuesday after a seven-week winning streak cooled on Wall Street.

US futures were flat and oil prices were little changed.

The Nikkei 225 index in Tokyo rose 1.4% to 33,219.39 after the Bank of Japan kept its ultra-loose monetary policy unchanged, as expected. The dollar rose against the yen, rising to 143.75 yen from 142.79.

Sydney's S&P/ASX 200 rose 0.8% to 7,489.10, while South Korea's Kospi rose 0.1% to 2,568.55.

Hong Kong's Hang Seng Index fell 1% to 16,469.32 and the Shanghai Composite Index gained less than 0.1% to 2,932.39.

Bangkok's SET slipped 0.2% while Taiwan's Taiex fell 0.4%.

On Monday, the S&P 500 rose 0.5% to 4,740.56 and the Nasdaq Composite gained 0.6% to 14,904.81. The Dow Jones Industrial Average ended essentially flat after most of the 0.2 percent gain faded by late afternoon, closing at 37,306.02.

Retailers and big tech companies were among the big winners. Amazon.com rose 2.7% and Etsy climbed 4.7%, posting the biggest gain among S&P 500 stocks.

Chipmaker Nvidia rose 2.4%, while Meta rose 2.9% and Netflix closed 3% higher.

Energy companies also rallied as crude oil prices rose by more than $1 as concerns grew over attacks by Iran-backed Houthis on ships in the Red Sea. Oil and natural gas giant BP has joined the growing list of companies that have halted shipments on the main trade route.

US Steel rose 26.1% after agreeing to be acquired by Japan's Nippon Steel. The Pittsburgh steelmaker played a key role in the country's industrialization. The all-cash deal is worth about $14.1 billion, or $14.9 billion with debt. That's almost double what rival Cleveland Cliffs offered just four months ago.

Investors had several more acquisition updates to consider. Photoshop maker Adobe rose 2.5% after announcing it would end its planned $20 billion acquisition of Figma.

The broader market rose last week, adding to solid gains in December after the Federal Reserve signaled that inflation may have cooled enough for the central bank to move to cut interest rates in 2024. The Dow closed last week with a record, while the S&P 500 ended the week with its longest weekly winning streak in six years while also approaching its all-time high.

The benchmark S&P 500 is now up more than 23% this year, while the Nasdaq has gained more than 42%.

Lower interest rates usually take pressure off financial markets. Since 2022, the Fed's goal has been to slow the economy and push investment prices through high interest rates to such an extent that inflation comes under control. Economic growth has slowed but not slipped into recession, while inflation continues to ease.

Wall Street expects these conditions mean the Fed is done raising rates and could begin cutting rates in early 2024. Investors will get their last major inflation update of the year on Friday when the government releases its personal consumption spending report. It is the Fed's preferred measure of inflation and has been relaxed since mid-2022.

Analysts polled by FactSet expect inflation to fall to 2.8% in November from 3% in October.

Investors also need to examine some key earnings reports this week that could give them a better sense of how companies and consumers are faring amid high interest rates and persistent inflation. Package delivery company FedEx will report its latest financial results on Tuesday and Cheerios maker General Mills will report results on Wednesday. Athletic shoe giant Nike will release its latest results on Thursday.

Early Tuesday, the yield on the 10-year Treasury note fell to 3.91% from 3.95% late Monday.

Benchmark U.S. crude fell 12 cents to $72.70 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 3 cents to $77.98 a barrel.

The euro rose to $1.0941 from $1.0925 late Monday.