According to Bloomberg, Asian stocks are likely to mirror the drops seen on Wall Street due to renewed heavy selling of major technology firms, hinting at investors reducing their exposure to US high-risk assets. Gold reached a new all-time high.

The Australian stock market dipped, with futures in Tokyo and Hong Kong pointing towards lower openings. US stock contracts showed minimal changes after a decline the previous day, with large technology companies hitting their lowest level since September. Traders are scaling back expectations of US interest rate cuts ahead of the Federal Reserve decision, seeking clarity amid economic and political uncertainties. Treasury markets saw a slight increase following a successful $13 billion 20-year bond auction.

Investors have cut back significantly on US equities and increased their cash reserves, as per Bank of America Corp.'s recent survey. A month earlier, stocks were achieving new highs on hopes of growth under the Trump administration. However, these assumptions could be at risk if the economy slows down and investments in artificial intelligence do not yield returns.

In Asia, Chinese banks are expected to lower consumer loan rates to historic lows to boost economic stability. China is aiming to boost consumer spending and domestic demand to reduce reliance on trade and exports.

The yen was one of the weakest performers among G-10 currencies, ahead of a Bank of Japan announcement where policymakers are anticipated to maintain the benchmark interest rate. Market instability in Indonesia triggered circuit breakers and trading halts on Tuesday.

Oil prices fell due to broader market instability and concerns about oversupply, despite escalating tensions in the Middle East. Gold, on the other hand, surged to a record high exceeding $3,030 per ounce, highlighting its appeal as a safe haven asset.