A look at the day ahead in European and global markets from Tom

Westbrook

Central bank moves in Asia on Tuesday went as telegraphed, with

Japan raising its short-term policy rate to 1% - the highest

since 1995 - and Australia leaving rates on hold at 4.35%.

Neither the yen nor the Australian dollar made sharp initial

reactions.

Focus falls next on press conferences in Sydney and Tokyo,

with investors expecting reasonably hawkish outlooks - having

priced another hike in Japan this year and a 65% chance of a

further hike in Australia.

Reserve Bank of Australia Governor Michele Bullock is due at

0530 GMT and Bank of Japan Deputy Governor Shinichi Uchida, who

is filling in for a hospitalised Kazuo Ueda, an hour later.

Japan's hike brought rates to the bottom of where

policymakers estimate the economy's neutral rate lies, but came

with a pause - which had also been signalled - in the central

bank's extrication from the bond market.

It will reduce its bond buying by about 200 billion yen

($1.25 billion) a quarter until April 2027 when it will level

off with JGB buying at around 2 trillion yen a month.

Elsewhere, traders were unwilling to take markets higher on

the tentative peace made over the weekend between the U.S. and

Iran. Oil prices held above $80 a barrel, details of the deal

were scarce and shippers said it could take weeks to rebuild the

confidence to safely navigate the Strait of Hormuz.

SoftBank shares were steady after Reuters reported

the chief financial officer of the Vision Fund investing arm is

leaving after a decade.

Chinese data was patchy in May, with retail sales falling

for the first time in more than three years and weighing on

market mood, with stocks down in Hong Kong.

Overnight, Wall Street had notched gains. In after-hours

trade SpaceX's market value surpassed $2.6 trillion as

the stock rallied to some 48% above its listing price.

Nvidia ( NVDA ) threw debt markets a curveball with a

surprisingly big $25 billion bond issuance, which it says it

will use for refinancing and general purposes.

Key developments that could influence markets on Tuesday:

- Economics: German ZEW survey

($1 = 160.0700 yen)

(Editing by Jamie Freed)