The Japan stock market ended lower on Tuesday, with the Nikkei falling almost 1 percent to close at 42,394.40 points. Global markets are cautiously optimistic, with tech shares expected to rise. On Wall Street, major averages closed slightly up, with Dow gaining 0.30 percent, NASDAQ rising 0.44 percent, and S&P 500 increasing by 0.41 percent. Traders are awaiting earnings reports from Nvidia and monitoring developments in Washington after President Trump removed Fed Governor Lisa Cook. Trump has also threatened additional tariffs on countries with digital taxes. Crude oil prices dropped on concerns about U.S. trade policies.

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