Japan's Nikkei share average was expected to drop on Wednesday after soft U.S. manufacturing data added to concerns about a global economic slowdown and worries that European Central Bank's plans to shore up the euro zone will be insufficient.
Market players said the Nikkei was likely to trade between 8,700 to 8,800 on Wednesday, although it could find resistance at its 75-day moving average, which stood at 8,768.48 on Tuesday.
Nikkei futures in Chicago closed at 8,795, up 0.2 percent from the close in Osaka of 8,780.
Sentiment for equities was hit after U.S. manufacturing shrank at its fastest pace in more than three years in April and after FedEx Corp
The ECB meets on Thursday and ECB President Mario Draghi is expected to unveil plans to curb high borrowing costs for heavily indebted Spain and Italy, although some market players worry the scheme could lack detail.
The Nikkei closed down 0.1 percent on Tuesday to 8,775.51, marking its fourth straight session of losses and its third at a four-week closing low as pessimism about flagging growth in China and the rest of Asia continued to weigh on the market.
The index has fallen 0.7 percent since August 31. September is usually its weakest month, with an average fall of 1.2 percent between 1971 and 2011. > Wall St cuts losses on Apple strength; FedEx down late <.N> > Euro retreats on concerns about ECB bond buys > U.S. bond yields edge up as ECB in focus > Gold rises for 3rd day; hits resistance at $1,700/oz > Oil falls on economic concerns, weak U.S. data.
