NEW YORK (Reuters) – Asian stocks appear to be rising on Wednesday, returning from a sharp sell-off on Tuesday, while Australian stocks were seen opening weaker in a recovery after a holiday on Tuesday.
Higher markets in Europe and a slight decline from the record level of US stocks overnight suggested that investors were cautious about possible blockades of a US stimulus plan and ahead of a Federal Reserve policy announcement. .
Eyes are on the Australian inflation figures to be released later on Wednesday, said Steven Daghlian, a market analyst at CommSec in Sydney, who noted that both stocks and the Australian dollar were “in tears”. Australian stocks reached an 11-month high on Monday, “close to pre-COVID levels,” he said.
The US Federal Reserve is set to announce the results of its two-day political meeting on Wednesday. Analysts expect the Fed to stay on track to help accelerate the economic recovery.
U.S. stimulus talks are in the spotlight, U.S. Senate Majority Leader Chuck Schumer said Democrats will continue President Joe Biden’s coronavirus aid plan without Republican support if necessary.
European equities rose on Tuesday as strong gains from wealth manager UBS and auto parts maker Autoliv added to a string of optimistic corporate updates, while the International Monetary Fund raised its forecast for global growth in 2021.
US Treasury yields fell largely on restless overnight trading, after reaching a three-week low earlier at the long end of the curve, as investors remained cautious about the size of a proposed US stimulus package.
10-year benchmarks yielded 1.033% compared to 1.04% late Tuesday.
Australian S & P / ASX 200 futures lost 0.25% on early trading.
Japanese Nikkei 225 futures added 0.07%, while the Nikkei 225 index closed the night overnight, and Hong Kong’s Hang Seng futures rose 0.68%.
E-mini futures for the S&P 500 rose 0.21%.
The Australian dollar rose 0.05% against the green dollar to $ 0.775.
The US dollar has generally fallen as traders have shown a preference for riskier currencies. The dollar index fell 0.194% and the euro rose 0.02% to $ 1.2162.
The Japanese yen weakened 0.01% against the green currency to $ 103.61, while the pound last traded at $ 1.3735, up 0.01% that day.
Reporting by Alwyn Scott; Edited by Lisa Shumaker