Investing.com - Asian stocks mirrored Wall Street's upward trajectory on Tuesday ahead of a series of speeches by Federal Reserve officials set for later in the day, while the Australian dollar remained steady and the S&P/ASX 200 climbed in anticipation of the country's upcoming interest rate decision.
Easing concerns over political instability in Europe further uplifted the market mood, leading Euro Stoxx 50 Futures to rise by 0.6%, effectively reversing some of last week's significant losses. Similarly, FTSE 100 Futures saw a 0.43% increase.
The primary focus in the Asian trading hours on Tuesday was the Reserve Bank of Australia's (RBA) policy decision. The consensus is that the central bank will hold steady on rates. However, the spotlight will be on any forward guidance hinting at a potential easing cycle in Australia.
Elsewhere, the MSCI's broadest index of Asia-Pacific shares outside Japan rose by 0.68%, buoyed by an overnight rally on Wall Street.
Japan's Nikkei 225 advanced 0.83%, Hong Kong's Hang Seng edged up by 0.14%, and Chinese blue-chips ticked up by 0.17%.
Central banks in Norway, the UK, and Switzerland are set to meet this week, with expectations for the first two to hold steady on rates and for the Swiss National Bank to implement another 25 basis points of easing.
In the US, a flurry of Fed speakers are slated for Tuesday, potentially providing further insights into the US interest rate outlook following last week's policy decision. Currently, futures indicate approximately 45 basis points worth of Fed cuts priced in for the remainder of 2024.
In currency markets, the euro dipped slightly to $1.0729, while sterling rose 0.04% to $1.27105. China's onshore yuan remained near a seven-month low at 7.2554 per dollar, influenced in part by mixed economic data on Monday.
In commodities, oil prices edged higher due to a more robust demand outlook and investor confidence that OPEC+ producers might pause or reverse plans to increase supplies starting in Q4 2024. Brent crude futures were up 0.11% at $84.34 per barrel, while U.S. West Texas Intermediate crude futures solidified at $80.34 a barrel. Spot gold edged 0.13% higher to $2,321.99 an ounce.