Investing.com - Asia-Pacific markets are bracing for a surge as Wednesday's trading unfolds, following a slight increase at Wall Street's month-end.
The ASX 200 lifted by 0.3% and Nikkei 225 futures were down by 0.1% as of 10:50 am AEDT (11:50 pm GMT) on Wednesday, indicating a mixed start.
During the US session overnight, The S&P 500 rose by 0.6%, with real estate firms, banks, and utilities leading the pack. The Nasdaq Composite rose by 0.5%, while the Dow Jones Industrial Average added 0.4%. For the month, they marked losses of 2.8% and 1.4% respectively.
The recent stock downturn has coincided with a pause in interest-rate increases, the longest since the Federal Reserve began raising borrowing costs in March 2022 to tackle inflation. Fed officials are expected to keep interest rates steady at this week's policy meeting, which concludes on Wednesday. However, they have hinted at potential further increases if wage and price growth slows down in the coming months.
In the commodities market, U.S. oil futures declined by $1.29 a barrel to finish Tuesday at $81.02, marking an 11% drop for October. Gold prices also retreated below the $2,000 per troy ounce mark, despite having its best month since March. Bitcoin maintained its position near its highest level in a year on Tuesday.
On the bond markets, the yield on Australian 2 Year government bonds was higher at 4.45%, while the 10-Year yield also rose to 4.92%. U.S. Treasury yields were also higher, with the 2 Year yield at 5.09% and the 10 Year yield at 4.93%.
The Australian dollar and Vietnamese Dong were flat while the Thai Baht added 0.2%, the Korean Won added 0.1% and the Indonesian Rupiah lifted 0.4%. The US Dollar Index also lifted 0.5%.
In Asia, Chinese shares closed lower following surprisingly weak October PMI data, indicating a contraction in the manufacturing sector. The benchmark Shanghai Index fell 0.1% to 3018.77, ending the month 2.95% lower. Hong Kong shares also closed lower, with the benchmark Hang Seng Index declining 1.7% to 17112.48, marking a 3.9% loss for the month. However, Japan's Nikkei Stock Average rose 0.5% to close at 30858.85, erasing earlier losses after the Bank of Japan mostly maintained its accommodative policy stance.
In Europe, stocks rose ahead of an expected higher US open, despite mixed results in Asia. The Stoxx Europe 600 advanced 0.7%, the FTSE 100 lifted 0.5%, the DAX rose 0.6%, and the CAC 40 rallied 1%, with property shares among the biggest gainers.