Stocks in Asia are set to follow Wall Street higher, while oil steadied after its biggest drop in two weeks, as signs that a ceasefire in the Middle East is holding eased fears of a broader conflict that could threaten the global economy.

Equity futures indicated gains in Sydney and Hong Kong, with Tokyo closed for a holiday. Futures for the S&P 500 edged higher in early trading after the US benchmark rose to a record on Tuesday. Washington played down the prospect of an active conflict with Tehran a day after an escalation of hostilities over the Strait of Hormuz.