US building permits increased by 1.9%, with housing starts surging 10.7% in February, signaling robust demand and a resilient US economy.

Hopes of an H1 2024 Fed rate cut impacted 10-year US Treasury yields, which declined by 0.72% to 4.293%. On Tuesday, the Nasdaq Composite Index rose by 0.39%. The Dow and S&P 500 ended the session up 0.83% and 0.56%, respectively.

While the US equity markets could set the tone for the Wednesday session, the PBoC will be in focus. The PBoC will announce the 1-year and 5-year loan prime rates. Economists expect the PBoC to leave the 1-year and 5-year LPRs at 3.45% and 3.95%, respectively. An unexpected cut to LPRs could drive buyer demand for riskier assets.

However, Fed jitters may surface before the looming FOMC interest rate decision, projections, and press conference.

On Wednesday, the ASX 200 and Nikkei futures were up 13 and 210 points, respectively. The markets in Japan are closed on Wednesday.

ASX 200