Asian stocks ex-Shanghai Composite track S&P 500 futures higher

Major Asian equity indices except Shanghai Composite are reporting marginal gains, possibly tracking gains in the US index futures.

As of writing, Australia's S&P/ASX 200 is reporting 0.11% gains and stocks in South Korea are up 0.45%. Japan's Nikkei is flat-lined and stocks in New Zealand are adding 0.80%.

China unveiled measures on Tuesday to boost consumer spending, including the possible removal of restrictions on auto purchases. So far, however, that announcement has failed to put a strong bid under the Chinese stocks.

The Shanghai Composite index is currently down 0.50% at 2,887, having failed to close above the 50-day moving average (MA) on Tuesday. As now, the 50-day MA is located at 2,912.

The US stocks dropped in the overnight trade with the Dow Jones Industrial Average falling 120 points on recession fears. Notably, the US bond yield curve inversion deepened with the spread between the 10- and two-year yields falling to levels last seen in 2007.

As of writing, the futures on the S&P 500 are reporting 0.24% gains and the gains are likely providing relief to Asian investors.

The gains, however, could be short-lived if the US yield curve inversion continues, bolstering recession fears. Also, the ongoing trade dispute between the US and China will likely keep the gains, if any, under check.