Asian Stocks Hover Near 4-Year Highs as Wall Street Rally Lifts Sentiment; Oil Slips on Trade Worries

Mumbai: Asian stocks traded near four-year highs on Tuesday, buoyed by Wall Street’s latest record close and optimism surrounding the upcoming earnings season. Gains were tempered by investor caution over global trade talks and slipping crude oil prices.

The MSCI Asia-Pacific index (excluding Japan) touched its highest level since October 2021 during early trading, extending its 2025 gain to nearly 16%. Japanese markets reopened after a holiday and posted modest gains despite the ruling coalition’s weekend election setback. Prime Minister Fumio Kishida confirmed he will remain in office, easing political uncertainty.

Wall Street’s S&P 500 and Nasdaq both hit fresh record highs on Monday, driven by strong showings from Alphabet and other tech majors ahead of a packed earnings week.

The yen held steady at 147.46 per dollar, while the euro remained at $1.1689, just shy of its four-year high earlier this month. The dollar index stood at 97.905.

Market focus is now on U.S. tariff negotiations, especially with the European Union, as the August 1 deadline approaches. EU officials are reportedly weighing broader countermeasures if talks stall.

Meanwhile, oil prices edged lower due to trade-related demand concerns. Brent crude slipped 0.35% to $68.97, while WTI crude fell 0.31% to $66.99 per barrel.

In Washington, President Trump reportedly considered removing Fed Chair Jerome Powell last week but refrained due to fears of market turmoil. The Fed is expected to hold rates steady at its July meeting, though strategists at Goldman Sachs anticipate three rate cuts starting in September, provided inflation remains stable.

Investors now await Fed Chair Powell’s speech later Tuesday for signals on policy direction.