Indian shares are seen opening higher on Wednesday, mirroring firm global cues. Sentiment could improve as RBI Governor D Subbarao said he was "very happy" about falling inflation and the central bank will take note of it when discussing potential interest rate cuts. High retail inflation is a cause for concern and the country should aim at bringing down its current account deficit to 2.5 percent from the current level of 5 percent, he added.
Separately, the central bank has extended the external commercial borrowing (ECB) relaxation for affordable housing, which was there for one year to two more years and aviation for a few more months to help improve flow of cheaper funds into key infrastructure sectors.
Benchmark indexes Sensex and the Nifty rose about 0.2 percent each on Tuesday after government data showed India's headline inflation slowed for a third straight month in April, allowing room for the RBI to extend monetary easing to revive flagging growth.
Asian Markets
Asian stocks are trading mostly higher, with Japan's Nikkei index climbing over 2 percent to hit a fresh 5-1/2 year high on further weakening of yen. Benchmark indexes in Hong Kong, Indonesia, Malaysia, Singapore and Taiwan are posting modest gains, while Australia's All Ordinaries index is declining 0.9 percent on profit taking after touching a fresh-five year high early in the session. Resource stocks are coming under selling pressure as commodity prices eased overnight and mining services contractor UGL slashed its full-year profit guidance.
South Korea's Kospi average is edging down 0.2 percent on concerns about the impact of a weakening yen on South Korean exporters. Chinese shares are fluctuating, with energy and material shares declining.
U.S. And European Markets
U.S. stocks posted notable gains overnight on optimism the U.S. economy is gradually improving. The Dow rose 0.8 percent and the S&P 500 added a percent to new record highs, while the tech-heavy Nasdaq gained 0.7 percent to set another fresh twelve-year high.
On the economic front, the Labor Department released a report showing a moderate drop in import prices, although the data did not attract much attention ahead of the release of a slew of more closely-watched reports later in the week.
European stocks reversed earlier losses on Tuesday, boosted by gains on Wall Street and encouraging Eurozone industrial production data. Benchmark indexes in Germany, France, the U.K. and Switzerland rose between 0.5 percent and 0.8 percent.
Industrial production in the 17-nation eurozone rose 1.0 percent in March compared with the previous month, largely due to an increase in energy output, Eurostat reported. The rate of growth was bigger than the 0.3 percent rise seen in February and the 0.5 percent growth forecast by economists.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.