Futures indicated gains for stocks in Japan, Hong Kong and China. Australian stocks started trading higher.
Futures on the S&P 500 Index opened flat as news broke that Huawei Technologies Co Chief Financial Officer Meng Wanzhou was granted bail by a Canadian court.
A rally in US stocks was snuffed out and the S&P 500 ended Tuesday flat.
Helping improve sentiment was a signal from key Senate leaders to avoid a shutdown hours after President Donald Trump threatened to do so in a spat over funding for his border wall.
Carmakers in the US rose as China signalled it may cut tariffs on auto imports, though investors were cautious about a broader deal. The pound weakened as Brexit planning struggled to get back on track.
“For the time being, we maintain a defensive positioning,” said Jean-Pierre Couture, the chief economist and portfolio manager at Hexavest, a unit of Eaton Vance. “Many investors will be surprised when the slowdown is borne out by economic data and earnings announcements at the start of 2019.”
Global markets remain volatile as investors weigh the outlook for company profits against a backdrop of slowing economic growth amid trade tensions.
Investors remain unsure how the continuing flap over Canada’s arrest of the Huawei executive will impact trade discussions, and the Washington Post reported that the Trump administration is preparing a series of actions this week to condemn China for efforts to steal US technology.
The Brexit issue continues to weigh on the pound. A leadership challenge to UK Prime Minister Theresa May could be close, but the BBC reported the threshold of votes by Conservative members of parliament has not been reached.
In France, the spread between government bond yields and those in Germany rose to the highest since the 2017 election.
France’s Prime Minister Edouard Philippe confirmed that President Emmanuel Macron’s efforts to meet protester demands will have an impact on the country’s deficit, with the situation causing a new headache for the EU in its talks over the Italian budget.