It was a good day for news on this Tuesday since another unexpectedly optimistic snapshot of American company activity bolstered risk appetite and investor mood, setting the stage for a solid start to Wednesday's Asian market session.
The expectation of a Fed rate increase is frequently fueled by positive US economic statistics, which depress the price of stocks and other assets. This time, however, investors hailed the unexpected uptick in activity in the industrial and services sectors, and the previous pessimism that had descended on markets lifted.
As there isn't much in local area for traders to get into, Asian markets will likely follow suit. The only data expected to have any noticeable market influence is consumer inflation in Australia for September as well as the third quarter.
The three major US indexes all ended the day up 0.6% to 0.9%, and after the closing bell, American IT behemoths Microsoft and Alphabet, the parent company of Google, reported earnings that exceeded expectations.
However, the initial response from investors was conflicting. After-hours trading saw Microsoft shares rise 4% while Alphabet shares dropped over 5% as a result of the company's cloud-based earning falling short of analysts' forecasts.
When it releases its quarterly earnings results on Wednesday in Asia, LG Display in South Korea is anticipated to see a decline in revenue. The Apple vendor has reported losses in the past five quarters, and yet it is hoping for a change in the last quarter of this year.
In terms of economic data, Australia's consumer inflation on an annual basis is predicted to decrease from 6.0% during the period of April - June to 5.3% during the third quarter.
However, on a monthly basis, it is anticipated to increase to 5.4% for September compared to 5.2% for August. This would be the very first time in this year that the inflation has increased for two consecutive months.
Governor of Australian Reserve Bank Michele Bullock issued a warning on Tuesday, stating that there was a chance that inflation would be more resistant than anticipated and that higher interest rate might be required to control it.
Australian dollar took to what it heard favorably, defied the general trend of pervasive dollar weakness around the world, and is poised to advance toward $0.6360 going into the inflation statistics.
Despite the blue chip CSI300 index's recovery from Monday's 4.5-year low and the end of a 4-day declining trend, Chinese assets are still under pressure.
Investors must currently sift through a deluge of news regarding China's political and policy landscape.
Beijing has named Lan Foan, a person with limited experience within the central government, as its new finance minister, and China's top legislative body has authorized a 1 trillion yuan sovereign bond issue.
Xi Jinping, the Chinese President, paid his very first visit to the country's central bank since taking office ten years ago, which some people have interpreted as evidence of the central government's emphasis on bolstering the economy.