Australia

Australian shares look likely to rise again at the open after U.S. stocks gained for a third straight session.

ASX futures were up 0.7% or 47 points as of 9:00am on Wednesday, suggesting a higher open.

U.S. stocks rose for a third consecutive session, cutting into major indices' August losses as shares from technology to industrials and financials advanced.

The S&P 500 notched its largest three-day gain since March, paring its decline this month to 2%. A drop in government bond yields, which have climbed lately, eased pressure on stocks.

The broad stock index advanced 1.5% as all 11 sectors pushed higher. The Dow Jones Industrial Average added 0.8%, or about 293 points. The tech-heavy Nasdaq Composite rallied 1.7%.

Investors this week are scrutinizing a flood of economic releases as they try to anticipate the market's next moves. Data Tuesday added to signs of a cooling economy: Employers reported fewer open jobs last month, while a closely watched measure of consumer confidence tumbled in August.

In commodity markets, Brent crude oil rose 1.3% to US$85.49 a barrel while gold was flat at US$1,937.26.

In local bond markets, the yield on Australian 2 Year government bonds edged down to 3.83% while the 10 Year yield fell to 4.05%. US Treasury notes were higher, with the 2 Year yield dipping to 4.89% and the 10 Year yield lower at 4.12%.

The Australian dollar was relatively flat at 64.77 US cents from its previous close of 64.78. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged down to 98.08.

Asia

Chinese shares closed higher for a second straight session with investor sentiment boosted by a slew of policy measures to support the property sector and capital markets. However, "this is a reflection of relief, away from panic about an unchecked economic tailspin," rather than a solution for China's property market woes and wider crisis of confidence, said Vishnu Varathan, Head of Economics and Strategy at Mizuho Bank. Software and auto stocks led the gains with Beijing Kingsoft Office Software rising 6.1% and iFlytek climbing 1.4%. BYD gained 4.75% after reporting robust 1H results late Monday. Great Wall Motor advanced 2.8%. The benchmark Shanghai Composite Index ended 1.2% higher at 3135.89. The Shenzhen Composite Index rose 2.7% and the tech-heavy ChiNext Price Index advanced 2.8%.

Hong Kong shares ended higher as investor sentiment was lifted by a slew of policy measures from China to boost the property sector and capital markets. The Hang Seng Index increased 1.95% to finish at 18484.03, rising in line with other major markets across the region and after positive cues from the U.S. and Europe overnight. Property and tech companies led the gains. The Hang Seng Mainland Properties Index jumped 5.9%, with Country Garden Holdings rising 12% and Longfor Group gaining 6.05%. The Hang Seng Tech Index increased 2.6%, with Alibaba Group adding 2.25% and Meituan climbing 1.9%.

Japanese stocks ended higher, led by gains in tech and real-estate stocks, as concerns ebb about the Fed's further tightening and higher borrowing costs. Rakuten Group was up 1.6% and Mitsui Fudosan was 1.2% higher. USD/JPY was at 146.41, compared with 146.39 as of Monday's Tokyo stock market close. Investors are focusing on economic data and their policy implications. The Nikkei Stock Average ended up 0.2% at 32,226.97.

Indian shares finished slightly higher, led by gains in tech and financial stocks, as concerns over borrowing costs eased. Tech Mahindra was up 1.6% and HCL Technologies was 0.95% higher, while both HDFC Bank and Bajaj Finserv rose 0.8%. Among individual movers, Jio Financial Services was up 4.7% after Reliance Industries Chairman Mukesh Ambani said Jio will enter the insurance segment to offer life, general, and health insurance products. Investors are focusing on economic data and their policy implications. The benchmark Sensex was up 0.1% at 65075.82.

Europe

European stocks rose after upbeat trading in Asia. The Stoxx Europe 600 advanced 1%, and Germany's DAX and France's CAC 40 climbed 0.8% and 0.7% respectively. Asian markets all rose, with Hong Kong shares rising 1% and mainland China stocks gaining more than 2%. IG futures data show the Dow opening at 34540, versus Monday's higher close of 34559. "Asian stocks track Wall Street higher as investors look ahead to this week's economic data to get an idea of where rates could be heading," IG analysts write. "Weaker-than-expected German consumer confidence will be followed by U.S. confidence and job openings at 3pm, ahead of Friday's all-important non-farm payrolls."

The FTSE 100 rose 1.7% to 7,464.99 points after the U.K. bank holiday weekend and ahead of U.S. PCE inflation and jobs data due to be released on Thursday and Friday respectively. "Focus is on U.S. jobs and inflation data out this week for clues into the resilience of the U.S. economy as well as the Fed's next move," says Interactive Investor head of investment Victoria Scholar in a note. Distribution and outsourcing company Bunzl is among the top gainers, up 3.1% after raising its full-year profit outlook, while insurance company Prudential is the biggest riser, up 3.4%.

North America

U.S. stocks rose for a third consecutive session, cutting into major indices' August losses as shares from technology to industrials and financials advanced.

The S&P 500 notched its largest three-day gain since March, paring its decline this month to 2%. A drop in government bond yields, which have climbed lately, eased pressure on stocks.

The broad stock index advanced 1.5% as all 11 sectors pushed higher. The Dow Jones Industrial Average added 0.8%, or about 293 points. The tech-heavy Nasdaq Composite rallied 1.7%.

Investors this week are scrutinizing a flood of economic releases as they try to anticipate the market's next moves. Data Tuesday added to signs of a cooling economy: Employers reported fewer open jobs last month, while a closely watched measure of consumer confidence tumbled in August.

Stock gains accelerated after the releases, showing how focused traders are on any sign that inflation may ease sufficiently to head off additional interest-rate increases by the Federal Reserve.

If consumers are growing more cautious "then maybe the Fed can park out at these levels, as opposed to raising rates higher," said Jerry Braakman, chief investment officer at First American Trust.

Investors moved toward the safety of bonds, pulling the yield on the benchmark 10-year U.S. Treasury note down to 4.121%, from 4.210% on Monday. Shorter-term bond yields dropped as well, with the two-year note's yield falling to 4.888%, from 5.048% on Monday.

Growth-oriented sectors such as communication services, consumer discretionary and technology led the market Tuesday, while the Nasdaq Composite recorded its best day in a month. Those groups of stocks can be particularly responsive to changes in interest rates, since they are often valued based on expectations of growth far into the future.

Tech and other growth stocks have pulled the market higher in 2023, with the tech sector advancing 42% compared with a 17% climb by the S&P 500.

Some investors said they believe the market's laggards are due for a comeback. The utilities sector, for example, is down 10% this year, while the energy segment is about flat.

"At some point the relative attractiveness of the stocks that have been left behind becomes so great you can't ignore them," said Grace Lee, senior portfolio manager at Columbia Threadneedle Investments.

The question of what the Fed will do next continues to hang over the market after the central bank's chair, Jerome Powell, said Friday that inflation remains too high and that officials are open to raising rates further if needed.

Investors will parse a new release of the Fed's preferred gauge of inflation, the personal-consumption expenditures price index, on Thursday. The next monthly jobs report is due Friday.

Among individual stocks, shares of Best Buy gained 3.9% after the retailer reported a smaller decline in sales than Wall Street analysts had projected.

Bitcoin jumped 6.3% Tuesday, after a federal appeals court ruled that the Securities and Exchange Commission must reconsider asset manager Grayscale Investments' application to launch the first bitcoin exchange-traded fund. Shares of crypto exchange Coinbase Global jumped 15%, climbing alongside other crypto assets.