* Ueda comments and tone in focus after BOJ's 'hawkish

hold'

* Trump unhappy with latest Iranian proposal, official

says

* Big tech earnings to test strong AI rally in April

* Fed, ECB and BoE also to stand pat this week

(Updates to Asia afternoon)

By Ankur Banerjee

SINGAPORE, April 28 (Reuters) - Stocks held their ground

and oil rose on Tuesday as investors weighed geopolitical

maelstrom in the Middle East, while the yen firmed after a

hawkish split at the Bank of Japan, underlined growing fears

over inflation fuelled by the war.

The BOJ, in an expected move, left short-term rates

unchanged at 0.75% but three of the nine-member board proposed

hiking, in the first of several central bank meetings this week

that could shed light on the impact of the conflict.

Markets will parse comments from Governor Kazuo Ueda at a

press conference at 0630 GMT to gauge how the protracted Iran

war has affected the central bank's rate-hike path.

"The 6-3 vote split and the stronger language on future

policy adjustment suggest the bar for another hike may be

falling," said Charu Chanana, chief investment strategist at

Saxo, noting that the key message is that the BOJ is no longer

simply waiting for inflation to become sustainable.

The yen strengthened to 159.12 per U.S. dollar but

was near the 160 level. A breach beyond that threshold has

markets worried Tokyo might step in to support the currency.

The yen has been straddling 159 since mid-March as the

threat of intervention and soaring oil prices have kept the

currency glued to those levels.

"Dollar/yen near 160 remains a major pressure point," said

Chanana. "Intervention risk may cap aggressive yen shorts, but a

sustained yen recovery will need clearer evidence that the BOJ

is prepared to keep tightening despite external uncertainty."

Japan's Nikkei retreated from a record high hit on

Monday while government bonds swung after the decision.

MARKETS AWAIT CLARITY ON US-IRAN TALKS, HORMUZ

The U.S. was reviewing Tehran's latest proposal to resolve

the war in the Middle East, but a U.S. official said President

Donald Trump was unhappy with the proposal because it did not

address Iran's nuclear programme.

That leaves the two-month-long conflict in a stalemate with

energy and other supplies through the critical Strait of Hormuz

still mainly shut, keeping oil prices well above $100 per

barrel.

MSCI's broadest index of Asia-Pacific shares outside Japan

was down 0.42%, not far from the record high

close it touched on Monday. The index is on course for a 17%

rise in April after dropping 13.5% in March.

The S&P 500 eked out modest gains on Monday, poised

for about a 10% gain for the month. U.S. stock futures

were flat on Tuesday, while European futures pointed to

a higher open.

The war has sent oil prices surging, accelerated inflation

and cast a shadow over the outlook for global growth, with the

closure of the Strait of Hormuz, which normally carries a fifth

of global oil and gas shipments, a key risk.

Brent crude futures rose 1% to $109.52 a barrel,

near a three-week high. U.S. West Texas Intermediate was

at $97.47. Oil prices are well above pre-war levels and have

steadily climbed as hopes for an imminent peace deal ebb.

Global monetary policy will be in the spotlight this week,

with the U.S. Federal Reserve, the Bank of England and the

European Central Bank due to announce policy decisions after the

BOJ. All are expected to hold rates unchanged but attention will

be on comments from policymakers on pricing pressure.

"Monetary officials in Japan are not alone in facing the

dilemma whether to tighten policy into an energy price shock

that is simultaneously inflationary and growth destructive,"

said Fred Neumann, chief Asia economist at HSBC.

"With every passing week that the Strait of Hormuz remains

closed, pressure is growing on central banks to lean against

mounting inflation."

The euro eased to $1.17105, with the dollar index

, which measures the U.S. currency against six major

units, at 98.542.

The dollar benefited in March from safe-haven flows as war

in the Middle East erupted but shed most of those gains on hopes

of a peace deal this month. It has steadied in recent days after

U.S.-Iran talks stalled.

Investors are also focusing this week on earnings from tech

giants Microsoft ( MSFT ), Alphabet, Amazon ( AMZN ),

Meta Platforms ( META ) and Apple ( AAPL ) that will be a test

for the blistering AI-driven rally in April.

Anthony Saglimbene, chief market strategist at Ameriprise,

said the earnings will provide the market with a real-time read

on whether AI investment is translating into commercial results.