Asian markets hovered near a four-year high on Tuesday, supported by Wall Street’s record close and optimism around upcoming corporate earnings. Investors also tracked global trade developments, especially US tariff talks with key partners, Reuters reported.Japanese markets reopened after a holiday, reacting calmly to weekend election results where the ruling coalition lost in the upper house. Despite the setback, Japan’s Prime Minister pledged to stay on.Japanese stocks opened higher before settling into modest gains, while bonds remained steady as the outcome was mostly in line with expectations.The yen, which had rallied 1% on Monday, held steady around 147.46 per dollar on Tuesday.MSCI’s comprehensive index of Asia-Pacific shares excluding Japan achieved its peak since October 2021 during early Asian trading but showed minimal movement. The index has increased by nearly 16% this year.The previous night, the S&P 500 and Nasdaq achieved record-high closures, driven by Alphabet and other major corporations ahead of numerous earnings reports this week.Investor attention remains fixed on tariff talks as the August 1 deadline approaches, with the European Union now considering a wider range of possible countermeasures. The euro remained steady at $1.1689, following a 0.5% increase in the previous session, yet remained below its near four-year peak reached earlier this month. The currency has risen 13% this year as investors seek alternatives to US assets affected by tariff uncertainties.The dollar index measured against six primary currencies stood at 97.905.US President Donald Trump reportedly considered firing Federal Reserve Chair Jerome Powell last week but ultimately backed off, concerned about potential market turmoil.The Fed is expected to keep interest rates unchanged at its July meeting, though rate cuts could follow later this year. All eyes are now on Powell’s speech on Tuesday for any signs of future policy shifts.Goldman Sachs strategists predict the Fed will begin cutting rates by 25 basis points in September, with three reductions expected, assuming inflation stays in check and concerns over the Fed’s independence don’t escalate.Meanwhile, crude oil prices slipped on fears of a possible trade clash between the US and the European Union, reducing fuel consumption.Brent crude futures decreased 0.35%, reaching $68.97 a barrel, whilst US West Texas Intermediate crude declined 0.31% to $66.99 per barrel.