Asian equities fluctuated Tuesday as investors digested losses on Wall Street and eyed this week’s interest rate decisions. At the start of a news-jammed week that includes a policy decision by the Federal Reserve and a report on US employment figures, all three major US indices finished in the red. Adding to investor uncertainty were raised fears about the banking sector after another US regional lender went under. Regulators announced the seizure of First Republic on Monday and that it had been sold to JPMorgan Chase, making it the second biggest bank by assets to collapse in US history. “The collapse of First Republic saw JPMorgan step up to the plate and squash the biggest market risk on the table,” said Edward Moya of the OANDA trading platform in a note. “It is looking like the stress for the smaller banks is over as we now have a playbook to help the next bank that runs into trouble.” The takeover of First Republic came after the collapse of three midsized lenders in March, including the high-profile failures of Silicon Valley Bank (SVB) and Signature Bank — which rattled markets and raised contagion worries. But Jack Ablin, chief investment officer at Cresset, added that the latest deal would go “a long way to calm investors’ concerns” about the turmoil in the sector. Multiple markets in Asia resumed trading after a holiday weekend, though bourses in mainland China remained closed. Hong Kong stocks pared early gains but closed in the green, while Tokyo stocks swung before ending higher — with the Nikkei 225 seeing its highest close since August last year, having advanced for four straight sessions. Japanese markets are closed for the rest of the week. Seoul, Taipei, Kuala Lumpur, Singapore, Wellington and Manila were all up, while Sydney, Jakarta and Bangkok. Investors are closely eyeing the Fed’s next interest rate decision due on Wednesday. SVB’s failure came after it took on too much interest rate risk, among other issues. The US central bank is widely expected to raise its benchmark lending rate for a tenth and possibly final time, this time by another quarter-point, as it continues its fight against high inflation. In Australia, the central bank announced a surprise interest rate hike to an 11-year high, dashing hopes it would hold them steady as inflation shows signs of slowing. The Reserve Bank of Australia lifted the key interest rate by 25 basis points, wrong-footing many economists who predicted there would be no change. The European Central Bank is expected to deliver a seventh consecutive rate increase on Thursday, as consumer price increases are still way above its two percent.