Asian shares advanced across the board as buying set in after the lull of a U.S. national holiday.

Analysts said the optimism may be driven by expectations the U.S. may decide to cut Chinese tariffs, a welcome move that would also help tame inflation, the Associated Press reported.

China’s Commerce Ministry said Tuesday that Vice Premier Liu He spoke with Treasury Secretary Janet Yellen about coordinating economic policy between the two biggest economies and maintaining the stability of supply chains.

Japan’s benchmark Nikkei 225 added nearly 1.0% in morning trading to 26,404.90. Australia’s S&P/ASX 200 rose 0.3% to 6,632.00. South Korea’s Kospi jumped 1.8% to 2,342.24. Hong Kong’s Hang Seng gained 0.8% to 21,997.04, while the Shanghai Composite inched up 0.1% to 3,409.95.

Market players are also closely watching for an interest rate decision by the Reserve Bank of Australia. It is expected to raise its key rate by 50 basis-points. Minutes of the latest policy meeting of the Federal Reserve are also due out on Wednesday and could bring hints on future policy.

Global investors have been worried about surging inflation and the possibility that higher interest rates could bring on a recession in some economies. U.S. trading was closed Monday for Independence Day.

The futures for the Dow industrials and the S&P 500 were both up 0.4% early Tuesday.

Shares ended last week with a rally, with the S&P 500 surging 1.1%. The Dow gained 1% and the Nasdaq rose 0.9%. The Russell 2000 index of smaller companies gained 1.2%.

In the first half of this year, the S&P 500 had its worst performance since the first six months in 1970. It’s now down 20.2% from the peak it set at the beginning of this year.