Global Markets Await Fed's Next Move Amid Record Highs in Asia

Japan's Nikkei hit a record high as investors anticipated Federal Reserve Chair Jerome Powell's congressional testimony on potential rate cuts due to softening U.S. labor market data. European markets saw mixed futures, while U.S. futures showed modest gains. Treasury yields and currencies remained stable, with commodity prices showing mixed trends.

Japan's Nikkei surged to a record high on Tuesday, buoyed by semiconductor shares, while global investors anxiously awaited Federal Reserve Chair Jerome Powell's upcoming congressional testimony. Market participants are hoping Powell will signal support for rate cuts following signs of a cooling U.S. labor market.

European markets are predicted to open mixed, as evidenced by EUSTOXX 50 futures dropping 0.2% while the FTSE saw a 0.1% uptick. U.S. futures also rose, with S&P 500 futures up 0.2% and Nasdaq futures improving by 0.3%, following a slight rise in Wall Street equities on Monday.

Across Asia, Taiwan's shares hit a record high before profit-taking trimmed gains, and indices in China and Hong Kong posted modest increases. Investors are closely watching Powell's testimony to gauge the likelihood of a rate cut in September, with many betting on an 80% chance.

(With inputs from agencies.)