Asian shares set for mixed opening, eyes on Fed, stimulus

NEW YORK: Asian equities looked set to rise on Wednesday, bouncing back from a steep sell-off on Tuesday, while Australian stocks were seen opening weaker in a catchup after a Tuesday holiday.

Higher markets in Europe and a slight decline from record stock levels in the United States overnight suggested that investors were cautious about possible roadblocks to a U.S. stimulus plan and ahead of a policy announcement from the Federal Reserve.

Eyes are on Australian inflation figures due out later Wednesday, said Steven Daghlian, a market analyst at CommSec in Sydney, who noted both equities and the Aussie dollar have been "on a tear." Aussie shares hit an 11-month high on Monday, "close to pre-COVID levels," he said.

The U.S. Federal Reserve is due to announce results its two-day policy meeting on Wednesday. Analysts expect the Fed to stick to its dovish tone to help speed the economic recovery.

U.S. stimulus talks are in focus, with U.S. Senate Majority Leader Chuck Schumer saying Democrats will move forward on President Joe Biden's coronavirus relief plan without Republican support if necessary.

European stocks rose on Tuesday as strong earnings from wealth manager UBS and auto parts maker Autoliv added to a string of upbeat corporate updates, while the International Monetary Fund raised its forecast for global growth in 2021.

U.S. Treasury yields were mostly down in choppy trading overnight, after earlier hitting three-week lows on the long end of the curve, as investors remained cautious about the size of a proposed U.S. stimulus package.

Benchmark 10-year notes were yielding 1.033per cent, compared with 1.04per cent late on Tuesday.

Australian S&P/ASX 200 futures lost 0.25per cent in early trading.

Japan's Nikkei 225 futures added 0.07per cent, while the Nikkei 225 index closed the overnight session per cent.Hong Kong's Hang Seng index futures rose 0.68per cent.

E-mini futures for the S&P 500 rose 0.21per cent.

The Australian dollar rose 0.05per cent versus the greenback at US$0.775.

The U.S. dollar edged lower across the board as traders showed a preference for riskier currencies. The dollar index fell 0.194per cent, with the euro up 0.02per cent to US$1.2162.

The Japanese yen weakened 0.01per cent versus the greenback at 103.61 per dollar, while Sterling was last trading at US$1.3735, up 0.01per cent on the day.

(Reporting by Alwyn Scott; Editing by Lisa Shumaker)