Asian shares track Wall Street higher; Treasury yields near multi-decade highs

SYDNEY, Oct 6 (Reuters) - Asian stocks gained on Tuesday after a tech-fuelled rally lifted the Nasdaq to a record close, with lower oil prices offering further support even as longer-dated Treasury yields hovered near multi-decade highs.

The euro languished near 17-month lows after briefly ‌touching $1.116 overnight, pressured by mounting fiscal concerns in France as investors dumped government bonds after an underwhelming budget. Political uncertainty also deepened after Spanish ‌Prime Minister Pedro Sanchez called a snap election.

Brent crude edged 0.6% higher to $100.88 a barrel, after losing 1.9% overnight as Gulf oil flows excluding Iran surged to over 81% of pre-war levels last month ​and the Group of Seven nations pledged to boost supplies. [O/R]

Most markets in Asia rose, with Japan's Nikkei gaining 1.1% and Hong Kong's Hang Seng index up 0.7%. MSCI's broadest index of Asia-Pacific shares excluding Japan was flat and South Korean shares fell nearly 1% after returning from a holiday.

European bourses are set for a higher open, with pan-region stock futures up 0.3%. Nasdaq futures edged up 0.2% and S&P 500 futures rose 0.1%.

The Nasdaq reached a record close overnight, buoyed by softer-than-expected jobs data that dampened ‌expectations for a rate hike from the Federal Reserve this ⁠month. [.N]

AI heavyweight Nvidia climbed 2.1%, reaching a record-high close and boosting its market value to $5.76 trillion.

"The rally in the market was tech-led once again, with the marginal easing of interest rate uncertainty along with a slight moderation in geopolitical risk allowing market ⁠participants to focus on the extraordinary earnings growth being delivered by AI names," said Kyle Rodda, a senior analyst at Capital.com.

The third-quarter earnings season kicks off next week. Goldman Sachs estimated consensus forecasts point to a 27% growth in S&P 500 earnings last quarter, with more than half that from companies benefiting from AI infrastructure spending.

Latin American markets also climbed, ​led ​by a rally in Brazilian stocks and the real currency, after right-wing Senator Flavio Bolsonaro outperformed ​poll predictions in the first round of the presidential election ‌and advanced to a runoff against leftist incumbent Luiz Inacio Lula da Silva.

The relentless climb in Treasury yields continued even as markets scaled back bets for an interest rate rise this month from the Fed to just 23% from 71% a week ago, after top policymakers stressed the need for more data before tightening again.