Investors will be also looking at the U.S. manufacturing activity report and private jobs data for July, expected later in the day, for clues on the Federal Reserve's monetary policy path.
HIGHLIGHTS:
China services growth hits slowest since September 2024, private PMI shows
Indonesian economic growth slows to 5.3% in Q2, but beats forecast
India's central bank holds rates, awaits clearer inflation signal before acting
Regional moves and currencies
Equities in emerging Europe were mixed. Hungary and Romania have been dealing with concerns about a potential energy crisis as water levels in the Danube river have reached record-low levels. The water is used for cooling of nuclear power plants operated by both the countries.
The Hungarian benchmark .BUX slipped 0.8%, while stocks in Romania .BETI rose 0.2%.
Among currencies, Hungary's forint EURHUF= dropped 0.8% against the euro after a similar sized gain in the previous session, while the Polish zloty EURPLN= fell 0.2%.
Asian currencies traded flat to higher against the dollar.
South Africa's rand ZAR= dipped 0.2%. Data showed that private sector expanded at a slightly lower pace in July. Its equities .JTOPI gained 0.6%, tracking higher precious metal prices.
The Turkish lira TRYTOM=D3 traded 0.1% lower.
Oil, U.S.-Iran talks and inflation concerns
Markets were also supported by easing inflation concerns as oil prices extended declines, with traders waiting for the outcome of U.S.-Iran talks. U.S. President Donald Trump said his administration was having "very good discussions" with Tehran.
Still, investors in the emerging markets remain cautious about energy supplies resuming and inflationary pressures easing even if a deal is reached and the Strait of Hormuz is reopened.
"You've seen inflation levels in the region much higher than normal and that's not going to rectify itself anytime soon," said Michael Field, chief equity market strategist for EMEA at Morningstar.
"I would expect over the next six months to see the IMF (International Monetary Fund) and other global organizations downgrade economic outlook forecasts for a lot of emerging market nations."
Emerging markets stocks and currencies strengthen
An index tracking emerging-market stocks climbed to a three-week high on Wednesday and the currencies' gauge hit a record high, as gains in chipmakers and declining oil prices boosted sentiment.
Robust earnings from AI-linked companies pushed Wall Street's S&P 500 .SPX and Dow .DJI to close at record highs overnight, easing demand concerns and renewing appetite for Asian semiconductor stocks, which have seen wild swings in recent weeks.
South Korean equities .KS11 advanced 3.8%, led by gains in chipmakers Samsung Electronics 005930.KS and SK Hynix 000660.KS, while Taiwan's benchmark .TWII rose 2.9%.
MSCI's index tracking global emerging markets stocks .MSCIEF rose 2%, while its currencies equivalent .MIEM00000CUS also edged 0.2% higher.
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