Asia markets set to open lower ahead of key China economic data; Japan to resume rally

Asia-Pacific markets appear set to extend their declines Wednesday, ahead of a slew of economic data from China.

Investors will also assess the Reuters Tankan manufacturing index for January, which is a leading indicator of the Bank of Japan’s official quarterly Tankan survey that assesses business conditions in the country.

In Australia, the S&P/ASX 200 extended its losing streak to a fourth day, falling 0.17% in early trade.

Futures for Hong Kong’s Hang Seng index stood at 15,793, pointing to a weaker open after the index led losses in Asia on Tuesday, closing at 15,865.92.

In contrast, Japan’s Nikkei 225 looks to rebound after snapping a six-day winning streak in the previous session, with the futures contract in Chicago at 35,885 and its counterpart in Osaka at 35,860 against the index’s last close of 35,619.18.

Overnight in the U.S., all three major indexes fell as bond yields ticked higher and Wall Street pored through the latest batch of fourth-quarter earnings.

The benchmark 10-year Treasury note yield climbed more than 11 basis points to 4.064% after Federal Reserve Governor Christopher Waller indicated in a speech that the central bank could ease monetary policy slower than Wall Street had anticipated.

The Dow Jones Industrial Average declined 0.62%, while the S&P 500 slipped 0.37% and the Nasdaq Composite dropped 0.19%.

— CNBC’s Sarah Min and Alex Harring contributed to this report