Australia

Australian shares are set to open higher, after the S&P 500 rose on earnings.

ASX futures were up 0.2% or 14 points as of 8:00am on Wednesday, suggesting a higher open.

The S&P 500 eked out a gain Tuesday, building on its recent rally as another round of earnings rolled in.

The broad-based index added 0.1%, bringing its advance for the year to 8.8%. The blue-chip Dow Jones Industrial Average rose 0.1%, logging its fifth consecutive day of gains. The tech-heavy Nasdaq slipped 0.1%.

In commodity markets, Brent crude oil was down 0.2% to US$83.16 a barrel, while gold was down 0.4% at US$2,314.10.

In local bond markets, the yield on Australian 2 Year government bonds was down at 3.98% while the 10 Year yield was also down at 4.30%. US Treasury notes were mixed, with the 2 Year yield up at 4.83% and the 10 Year yield down at 4.46%.

The Australian dollar was 65.96 US cents. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 99.80.

Asia

Chinese shares ended broadly higher as the market digested Chinese policymakers' latest signals from the Politburo meeting last week, which emphasized the role of capital markets. The benchmark Shanghai Composite Index rose 0.2% to 3147.74 and the Shenzhen Composite Index added 0.2%, while the ChiNext Price Index closed 0.1% lower. Among major stocks, Foxconn Industrial Internet added 2.3% and BYD gained 1.6%. Decliners included SAIC Motor, which closed 1.6% lower, and Aier Eye Hospital, down 0.9%.

Hong Kong shares ended lower amid profit-taking after their longest winning streak since 2018. Investors will likely shift their focus to earnings, as many companies are set to report 1Q results next week. Consumer-related tech giants led the losses. Alibaba fell 1.8% and Meituan declined 4.0%. Gaming giants were also broadly lower, with NetEase down 5.0% and Tencent shedding 1.2%. Energy stocks gave the market some support, with PetroChina gaining 1.1% and Cnooc rising 0.5%. The benchmark Hang Seng Index ended 0.5% lower at 18479.37 and the Hang Seng Tech Index dropped 2.1%.

Japanese stocks ended higher, led by gains in brokerage and electronics stocks, as hopes grew for U.S. Fed rate cuts and strong domestic earnings. Nomura Holdings gained 5.9% and Tokyo Electron climbed 5.2%. The Nikkei Stock Average rose 1.6% to 38835.10. Earnings were in focus. The 10-year Japanese government bond yield fell 3.0 basis points to 0.870%.

India shares closed lower, dragged by steel and bank stocks, with investors watching for further signals on rate cuts from the U.S. Fed. IndusInd Bank dropped 3.05% and ICICI Bank was down 1.5%. Tata Steel dropped 2.0%. Meanwhile, Hindustan Unilever led gains, rising 5.5%, while Tech Mahindra rose 2.4%. DCM Shriram Ltd. was 4.0% lower after its 4Q net profit fell 37% on year. Dr. Reddy's Laboratories fell 0.7% even as its 4Q net profit rose 36%. The benchmark Sensex closed 0.5% lower at 73511.85.

Europe

Stocks in the U.K. gained Tuesday, as the FTSE 100 Index added 1.2% to 8313.67.

Among large companies, John Wood Group PLC was the biggest gainer during the session, surging 8.6% to GBP165.00, and 4imprint Group PLC surged 5.6% to GBP6,420.00. Future PLC rounded out the top three movers on Tuesday, as shares surged 5.2% to GBP744.50.

EasyJet PLC posted the largest decline, dropping 5.8% to GBP510.20, followed by shares of Jet2 PLC, which fell 4.2% to GBP1,341.00. Shares of Burberry Group PLC fell 2.5% to GBP1,151.00.

European shares ended Tuesday higher, with the Stoxx Europe 600 index adding 1.1% to 514.02, the CAC 40 gained 1.0% to 8,075.68 and the DAX 40 rose 1.4% to 18,430.05.

North America

The S&P 500 eked out a gain Tuesday, building on its recent rally as another round of earnings rolled in.

The broad-based index added 0.1%, bringing its advance for the year to 8.8%. The blue-chip Dow Jones Industrial Average rose 0.1%, logging its fifth consecutive day of gains. The tech-heavy Nasdaq slipped 0.1%.

After pulling back in April, stocks have staged a comeback more recently on renewed hopes for interest-rate cuts this year. Corporate earnings results for the first quarter so far had also given investors some reason for optimism.

Tuesday's results weren't as rosy. Disney's shares dropped 9.5% after the media giant reported a quarterly loss and issued an earnings outlook that fell shy of Wall Street expectations.

"The valuation overall of stocks doesn't give you a whole lot of room if you're going to have some question mark about what your future is going to look like," said Steve Wyett, chief investment strategist at BOK Financial.

But Wyett said stocks can continue to build on their gains this year as long as it looks like inflation will continue to ease and that the Federal Reserve will cut interest rates.

Hopes for rate cuts in 2024 had dimmed in recent weeks after a string of data showing inflation has proven stickier than expected. But the latest jobs report on Friday showed hiring slowed sharply last month, helping ease fears of an overheating economy.

Futures traders are now pricing in a roughly 90% chance that the Fed will cut rates by the end of the year, according to CME Group data.

To some, the central bank's campaign to tame price pressures still has a ways to go. Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, said Tuesday the most likely scenario for the Fed is to hold rates where they are and "sit here for an extended period of time."

"If disinflation starts to come again and inflation starts to tick back down or we saw some marked weakening in the labor market, then that might lead us to cut back on interest rates," he said in an interview at the Milken Institute Global Conference.

The benchmark 10-year Treasury yield edged lower Tuesday, settling at 4.46%.

In other earnings, shares of Celsius fell 1.8% after the energy-drink company's first-quarter sales missed analyst expectations.

Palantir Technologies tumbled more than 15%. The data-analytics company late Monday reported stronger-than-expected revenue but a sharp slowdown in growth for its U.S. commercial business.

Tesla declined 2.9% after a federal regulator asked the electric-vehicle maker for more information regarding its Autopilot system tied to a December recall.

Among the companies still due to report this week are Uber on Wednesday and Warner Bros. Discovery on Thursday.