Stock markets advanced Friday ahead of a pivotal speech by the US central bank chief, expected to shed light on possible interest rate cuts in the world鈥檚 top economy.
Wall Street鈥檚 main indexes opened in the green after a tech sell-off earlier this week.
All major European stock markets were higher in afternoon deals following gains in Asia led by Chinese indices.
Recent days have seen cautious trading as investors await clarity from Federal Reserve chief Jerome Powell about the path for US interest rates, with recent data showing a cooling jobs market and a mixed picture for inflation.
Powell will deliver remarks during an annual gathering of central bankers in Jackson Hole, Wyoming, a key event for observers weighing the chances of a rate cut at a September meeting of policymakers.
鈥業nvestors will be keenly watching whether Powell places more emphasis on weaker payrolls versus more stable measures of labour market slack and still solid activity and inflation data,鈥� said Deutsche Bank managing director Jim Reid.
Powell has come under intense public pressure this year from President Donald Trump to lower rates 鈥� an unusual political intervention at the independent central bank.
In Asia, Shanghai鈥檚 main index rose 1.5 per cent, breaking 3,800 points for the first time in a decade as shares in Chinese semiconductor firm Cambricon surged.
Tokyo鈥檚 Nikkei index closed slightly higher, and Hong Kong advanced.
Japan announced Friday that core inflation eased in July 鈥� still above its central bank鈥檚 two-per cent target and boosting expectations of an October rate hike.
After a shaky few days on Wall Street, Asia 鈥榮hould act as a safe harbour while the Fed鈥檚 credibility is under the spotlight鈥�, said Chris Weston, head of research at Pepperstone.
Still, 鈥榟esitation to push risk higher will remain鈥�, he said, adding that there was 鈥榓 very low probability鈥� of Powell calling explicitly for rate cuts in his speech later in the day.
Also weighing heavily on investors鈥� minds is the potential for a peace deal in Ukraine more than three years after Russia鈥檚 invasion.
Trump on Thursday set a two-week time frame for assessing peace talks between Moscow and Kyiv, following days of high-stakes diplomacy that saw him meet with Russian and Ukrainian counterparts in person, as well as several European leaders.
Russian foreign minister Sergei Lavrov, however, told NBC television Friday there was 鈥榥o meeting planned鈥� between the Russian and Ukrainian presidents.
Oil prices wavered on Friday after gains the previous day.
Observers have been speculating over how a possible lifting of sanctions on Russia, a major oil producer, would impact markets of the possible lifting of sanctions on Russia, a major producer.
In corporate news, Deutsche Post shares tumbled 2.2 per cent after the German postal service said it would restrict package deliveries to the United States due to Trump鈥檚 tariffs.
