Asian markets displayed a mixed performance Tuesday, mirroring a cautious sentiment in the U.S. ahead of significant economic events later in the week. Oil prices remained largely stable despite the U.S. Treasury Department announcing new sanctions against Iran, with a warning of repercussions for countries continuing trade with the Islamic Republic.

Tokyo's Nikkei 225 rose 0.4% to 65,811.19, while South Korea's Kospi declined 0.4% to 6,675.88. Hong Kong's Hang Seng index shed 0.3% to 25,453.19, and the Shanghai Composite edged 0.1% lower to 3,878.38. In Australia, the S&P/ASX 200 gained 0.6% to 9,158.70.

On Monday, U.S. stocks concluded with mixed results. The S&P 500 dipped 0.3%, pulling back from an earlier monthly high, while the Dow Jones Industrial Average gained 0.3%. The Nasdaq composite fell 0.8%, influenced by a decline in technology stocks. Nvidia, a key player in the AI boom, saw its stock drop 2.9%, impacting the S&P 500. Micron Technology and Broadcom also contributed to the index's decline.

The Treasury Department's recent announcement on increasing the size of its planned buybacks of Treasurys offered some temporary relief in the bond market, with the yield on the 10-year Treasury easing to 4.71% from 4.74%. However, analysts suggest these measures may not fully address underlying issues of U.S. government debt and high oil prices, exacerbated by the conflict with Iran.

Analysts are anticipating remarks from Federal Reserve Chairman Kevin Warsh on Friday at the annual economic symposium in Jackson Hole, Wyoming. His speech is expected to focus on inflation and the Federal Reserve's strategy for managing it.

Oil prices have been a significant factor in rising costs. Brent crude, the international benchmark, has traded above $72 per barrel since the conflict with Iran began in late February. Early Tuesday, Brent crude was nearly unchanged at $90.51 per barrel, and U.S. benchmark crude oil was up slightly to $85.10 per barrel.

The imposition of new U.S. sanctions on Monday contributed to a record low for Iran's currency, the rial, against the U.S. dollar.