Asia's Stock Market Surges Amidst U.S.-China Tariff Truce Extension

Asian stocks experienced a rise with Japanese equities reaching new heights due to the extension of the U.S.-China tariff truce. The market focus is on U.S. inflation data, influencing future monetary policy. Australian shares saw a slight increase despite a rate cut by the Reserve Bank of Australia.

Asian stock markets saw significant gains on Tuesday, with Japanese equities reaching a new record high. This surge follows the announcement of an extended tariff truce between the U.S. and China. As a result, investor sentiment soared, particularly towards a key U.S. inflation report expected to influence future policy decisions.

The truce's 90-day extension between the two leading global economies has alleviated fears of hefty tariffs on Chinese exports to the U.S., further boosting regional market optimism. European markets are set for a strong open, with indications of positive trends in Nasdaq futures.

Meanwhile, analysts are closely watching U.S. inflation data due imminently, which will greatly impact Federal Reserve policy. Market expectations point to multiple interest rate cuts, driven by both economic factors and political pressure, amid President Trump's criticism of Fed Chair Jerome Powell.

(With inputs from agencies.)