Asian shares near July peak as optimism grows on trade, economy

Asian shares approached their July peak on Tuesday on signs the United States and China are inching closer to a truce in their trade war and on optimism the US economy is poised for solid, consumer-driven growth.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 percent after hitting a four-month high the previous day.

China's mainland shares were little changed while Japan's Nikkei rose 1.34 percent to one-year high after a market holiday on Monday.

On Wall Street, the S&P 500 gained 0.37 percent to a record high of 3,078.27 on Monday while the Dow Jones and the Nasdaq also clinched all-time highs.

In Europe, shares rallied more than 1 percent, with many reaching their highest level since January 2018. The STOXX 600 index of small, mid-sized and large companies across Europe surged to highs last seen in July 2015.

US S&P 500 futures gained a further 0.2 percent in Asia.