Asian stocks are expected to edge higher on Wednesday, with equity-index futures pointing to modest gains in Japan, Hong Kong, and Australia. Futures for South Korea were largely unchanged. This comes as traders anticipate the Federal Reserve's interest-rate decision later in the week, creating a cautious market environment.
The positive outlook for Asian markets follows a slight dip in US stocks on Tuesday, where both the S&P 500 and Nasdaq 100 recorded a second consecutive session of losses. Contracts for US stocks, however, opened in the green, suggesting a potential rebound.
The market sentiment is influenced by several factors, including surging oil prices and rising bond yields, which are keeping investors on edge. The upcoming Federal Reserve meeting is a key event that is expected to provide further direction for global markets.
