Citing job-market weakness, Fed Chair Jerome Powell on Tuesday indicated a likely interest-rate reduction this month.

Chinese markets rose sharply as new data showed China's deflation eased in September, but not quite as much as expected.

Official data showed consumer prices dropped 0.3 percent on a yearly basis in September, following a 0.4 percent decrease in August. Producer prices slid 2.3 percent year-on-year, slower than the 2.9 percent decline in August.

The benchmark Shanghai Composite index climbed 1.22 percent to 3,912.21 while Hong Kong's Hang Seng index surged 1.84 percent to 25,910.60.

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