With the data calendar relatively light across major economies this week, all eyes are on Wednesday's release of the Fed's July meeting minutes and Chair Jerome Powell's speech at Jackson Hole on Friday for clues on the outlook for US rates.

MSCI's broadest index of Asia-Pacific shares outside Japan hit a one-month top before giving up some gains to trade 0.4 percent higher.

Japan's Nikkei rose 1.7 percent, helped by a jump in technology stocks as it shrugged off the latest bout of yen strength.

Fed speakers have in recent days signalled a potential easing in September.

That's helped gold prices hover above the $2,500 level, near a record high, while the dollar dropped a notch lower in early Tuesday trade to its lowest in over seven months against a basket of currencies, at 101.76.

Thierry Wizman, global FX and rates strategist at Macquarie said markets were primed for dovish comments from Powell and other Fed speakers at Jackson Hole.

"Should they acknowledge the US economy's disinflation path, it will confirm a September rate cut... Markets will likely turn on the extent to which Powell opens the door for the possibility of a 50bp cut at one of the next three FOMC meetings."

Expectations of a dovish Fed outcome this week left the dollar struggling at an over seven-month low against the euro, which peaked at $1.108775 on Tuesday.

Sterling hovered near a one-month high and last bought $1.2985. Against the yen, the greenback fell 0.23 percent to 146.26.

Risk appetite was also buoyed by news that Israeli Prime Minister Benjamin Netanyahu had accepted a "bridging proposal" presented by Washington to tackle disagreements blocking a ceasefire deal in Gaza.

US stock futures were little changed in early Asia trade, with S&P 500 futures last 0.02 percent lower while Nasdaq futures ticked up 0.04 percent. EUROSTOXX 50 futures were flat, though FTSE futures fell 0.36 percent.

In Asia, China's benchmark lending rates were left unchanged as expected and market reaction was muted.

Shares of Japan's Seven & i slid more than 7 percent, having surged 23 percent in the previous session on the back of news that Canada's Alimentation Couche-Tard has made an offer to buy the 7-Eleven owner.

Later in the week, traders will also be closely watching Bank of Japan (BOJ) Governor Kazuo Ueda's appearance in parliament on Friday, where he is set to discuss the central bank's decision last month to raise interest rates.

The BOJ's hawkish tilt had injected huge volatility into markets as investors aggressively unwound yen-funded carry trades, rocking stocks globally.

The market turmoil has since abated after BOJ deputy governor Shinichi Uchida earlier this month played down the chance of further rate hikes in the near term.

"With markets calming, Ueda may change tack and return to talking about normalising interest rates," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia.

Oil prices edged lower on easing worries about a supply disruption in the Middle East, with Brent crude last down 0.15 percent at $77.54 a barrel. US crude eased 0.5 percent to $74 per barrel.