Markets Optimistic Ahead of Powell's Speech, Asian Shares Climb

Asian shares rallied following Wall Street gains, with investors hoping for dovish signals from the U.S. Federal Reserve Chair Jerome Powell. The euro recovered some losses, and French bonds showed a narrowing risk premium post-election. Market participants anticipate a rate cut due to soft labor data.

Asian shares rallied on Tuesday, mirroring Wall Street's gains as investors awaited remarks from U.S. Federal Reserve Chair Jerome Powell. A dovish tone was hoped for, potentially indicating future rate cuts.

The euro recovered lost ground and French bonds showed a narrowing risk premium, following shocking election results in France that led to a hung parliament. The MSCI's broadest index of Asia-Pacific shares outside Japan increased by 0.3%, while Japan's Nikkei surged 1% to a new record high.

S&P 500 and Nasdaq futures rose by 0.2% and 0.3% respectively, continuing the upward trend set by Wall Street. Chinese blue chips edged up 0.1% and Hong Kong's Hang Seng remained stable. Investors are now focusing on Powell's Congressional appearance, betting that recent soft labor data will prompt a rate cut in September.