Asian stock markets rebound ahead of Fed decision; U.S. stock futures also higher

On Wednesday stocks in Hong Kong recovered ahead of the conclusion of a U.S. Federal Reserve meeting later in the day. Shares in China gained back some of the ground lost on first two trading days of the week.

As the conclusion of the Fed meeting looms, analysts say they expect no rate changes, at this point. The central bank’s policy statement will be released at 2 p.m. EST, followed by Chairwoman Janet Yellen’s news conference at 2:30 p.m.

The Hang Seng Index gained 0.7%, having closed at a two-month low Tuesday.

The Shanghai Composite Index gained 1.7% after slipping a total of more than 5% Monday and Tuesday.

Hong Kong shares received a boost from hopes that the Fed won’t accelerate its rate-raising timeline.

An avalanche of IPOs sucking liquidity from the market also put Chinese stocks under pressure. But investors and analysts are bracing for more volatility.

Gerry Alfonso, director of trading at Shenwan Hongyuan Securities, said that investor sentiment today was given a shift, "probably related to the announcement by a large Chinese bank of reforms in its ownership structure.”

Australia’s S&P ASX 200 gained 1.1% while the Nikkei Stock Average was lower 0.2%.

Meanwhile, U.S. stock futures were also higher, as Fed decision loomed.

The Dow Jones Industrial Average added 31 points, or 0.2%, to 17,856.

The S&P 500 index gained 2.50 points, or 0.1%, to 2,091.50.

Futures for the Nasdaq-100 index added 2 points, or 0.1%, to 4,453.75.