Investors are now awaiting more clues on U.S. monetary policy from the Federal Reserve meeting later in the day, and key tech earnings from Meta.

Following overnight advances on Wall Street, most Asian stock indexes increased on Wednesday. Traders are now anticipating more clues on U.S. monetary policy from a Federal Reserve meeting later in the day.

A robust overnight session on Wall Street following a wave of better-than-expected quarterly profits provided encouraging indications for regional markets. Inflation predictions have been supported by data suggesting a slower-than-expected rise in labour costs in the United States.

However, conflicting manufacturing data from China and worries over a hawkish Fed outlook restricted stock advances in the area. A private poll revealed that the nation's manufacturing sector shrank in January despite the relaxation of anti-COVID rules, which caused China's Shanghai Shenzhen CSI 300 and Shanghai Composite indices to trail behind their counterparts for the day.

Contrary to official data issued earlier this week, the reading revealed that smaller enterprises were still having difficulty due to sluggish demand and an increase in COVID-19 cases.

Over in London, investors are forecasting the FTSE 100 to start the day higher as they await the first of three significant interest rate decisions from the Federal Reserve this week, which is coming after London closes.

The markets estimate the US central bank to increase interest rates by 25 basis points. In contrast, the BoE and the ECB are expected to raise rates by half a percent.

Prior to that, the calendar is packed with corporate reports, including the results of illustrious companies like GSK PLC, Entain PC, Severn Trent PLC, and Vodafone Group PLC.

Meanwhile in the US, in anticipation of results from Apple, Alphabet, and Amazon.com on Thursday as well as those from Meta Platforms on Wednesday, tech companies are driving the indices higher.

The market estimates a 0.25 percentage point increase in interest rates from the Fed, but investors will be paying close attention to what Chair Jerome Powell has to say at a news conference in the afternoon to learn more about the Fed's outlook for the next year.

In order to ensure that inflation is controlled, Fed officials have stated that they want to see the terminal rate increase over 5% and that they will maintain rates higher for longer.

However, some investors had hoped to see indications that the Fed may be inclined to stop raising rates later this spring.

Key Developments:

• German Manufacturing PMI (Jan) at 08:55 GMT.
• Eurozone preliminary CPI YoY (Jan) at 10:00 GMT.
• US ADP Nonfarm Employment Change (Jan) at 13:15 GMT.
• Crude Oil Inventories at 15:30 GMT.
• FOMC Statement at 19:00 GMT.
• Fed Interest Rate Decision at 19:00 GMT.

(Investing.com, Reuters.com)