Japan 5-year bond yield fell 3.5 bps to 1.960%.

U.S. President Trump said Iran "always tears up agreements" and vowed to strike them hard, adding the United States will control the strait and could ultimately dominate it.

Bank of Korea data on Tuesday showed foreign investors remained net sellers of South Korean stocks for a fifth consecutive month in June, despite tech-led gains. Non-residents sold $30.72 bln of Korean stocks and bonds in June, following $26.15 bln of net sales in May; foreign investors have been net sellers since February. The BoK said concerns about overheating in AI infrastructure investment weakened sentiment, and a rising market prompted portfolio rebalancing that reduced foreign equity holdings and accelerated capital outflows.