A latch valve of the slide type is provided in the air storage chamber of an air-operated cylinder and piston tool which requires a percussive or striking action followed by return to a condition prepared for subsequent and rapidly repeated action. In the returned and prepared condition the latch valve captures a charge of compressed air in the storage chamber while exhausting the cylinder so as to permit the preceding return stroke. In the fired condition the latch valve opens the storage chamber directly into the cylinder while closing the exhaust. In one form the latch valve includes a port that opens into a return air reservoir when in the fired condition to charge the same. In another form the latch valve includes a transfer tube that cooperates with said port to exhaust the return air reservoir after each full cycle of operation.