GLOBAL MARKETS-Asian shares set for mixed opening, eyes on Fed, stimulus

* Aussie shares set to play catch up to other Asian markets
* Eyes on Fed policy, stimulus talks, Australia inflation
* Rally in Europe reflects strong earnings, higher IMF
outlook

By Alwyn Scott
NEW YORK, Jan 26 (Reuters) - Asian equities looked set to
rise on Wednesday, bouncing back from a steep sell-off on
Tuesday, while Australian stocks were seen opening weaker in a
catchup after a Tuesday holiday.
Higher markets in Europe and a slight decline from record
stock levels in the United States overnight suggested that
investors were cautious about possible roadblocks to a U.S.
stimulus plan and ahead of a policy announcement from the
Federal Reserve.
Eyes are on Australian inflation figures due out later
Wednesday, said Steven Daghlian, a market analyst at CommSec in
Sydney, who noted both equities and the Aussie dollar have been
"on a tear." Aussie shares hit an 11-month high on Monday,
"close to pre-COVID levels," he said.
The U.S. Federal Reserve is due to announce results its
two-day policy meeting on Wednesday. Analysts expect the Fed to
stick to its dovish tone to help speed the economic recovery.
U.S. stimulus talks are in focus, with U.S. Senate Majority
Leader Chuck Schumer saying Democrats will move forward on
President Joe Biden's coronavirus relief plan without Republican
support if necessary. European stocks rose on Tuesday as strong earnings from
wealth manager UBS UBSG.S and auto parts maker Autoliv
ALIVsdb.ST ALV.N added to a string of upbeat corporate
updates, while the International Monetary Fund raised its
forecast for global growth in 2021.
U.S. Treasury yields were mostly down in choppy trading
overnight, after earlier hitting three-week lows on the long end
of the curve, as investors remained cautious about the size of a
proposed U.S. stimulus package.
Benchmark 10-year notes US10YT=RR were yielding 1.033%,
compared with 1.04% late on Tuesday.
Australian S&P/ASX 200 futures YAPcm1 lost 0.25% in early
trading.
Japan's Nikkei 225 futures NKc1 added 0.07%, while the
Nikkei 225 index .N225 closed the overnight session %.
Hong Kong's Hang Seng index futures .HSI HSIc1 rose
0.68%.
E-mini futures for the S&P 500 EScv1 rose 0.21%.
The Australian dollar rose 0.05% versus the greenback at
$0.775.
The U.S. dollar edged lower across the board as traders
showed a preference for riskier currencies. The dollar index
=USD fell 0.194%, with the euro EUR= up 0.02% to $1.2162.
The Japanese yen weakened 0.01% versus the greenback at
103.61 per dollar, while Sterling GBP= was last trading at
$1.3735, up 0.01% on the day.

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