Japanese Shares Surge as Investors Monitor Key Data

Japanese shares led Asian markets higher on Tuesday with the yen weakening, as investors awaited key U.S. inflation data to gauge the Federal Reserve's policy outlook. Oil prices eased after a notable jump. European stock markets were poised for a higher open, and U.S. economic data anticipated this week could influence market dynamics.

Japanese shares spearheaded gains in Asia on Tuesday, weakening the yen as investors awaited critical U.S. inflation data which could influence the Federal Reserve's future policy decisions. The uptick in Japanese shares follows last week's market volatility driven by recession fears and a strengthening yen.

Oil prices eased after a 3% increase on Monday, bringing cautious optimism as the Middle East conflict looms over global crude supplies. Gold prices, bolstered by demand for safe-haven assets, saw a slight decline.

European markets were set to open higher, reflecting a cautious investor sentiment. The upcoming U.S. economic data, including consumer price index and retail sales, could either allay or amplify recession worries, significantly impacting global markets.

(With inputs from agencies.)