Asian Markets Steady Amid Tariff Talks and Leadership Shifts

Asian markets hovered around a four-year high on Tuesday, buoyed by Wall Street's record-closing highs and ongoing corporate earnings reports. As investors evaluated tariff negotiations between the U.S. and its trading partners, recalibration in equity markets was observed.

In Japan, markets reopened after a holiday amid political turmoil following the weekend's election, which saw the ruling coalition defeated in upper house elections. Although Prime Minister Shigeru Ishiba pledged to stay on, the leadership weakness could trigger more fiscal expansion, potentially detrimental to Japanese assets like the yen.

Investor attention shifted to U.S. trade negotiations ahead of the August 1 deadline, with the European Union considering countermeasures as prospects with Washington appear bleak. Furthermore, the Federal Reserve's future decisions, especially concerning potential rate cuts later this year, remain under scrutiny.

(With inputs from agencies.)