Fed rate cut, trade, oil and currencies in the spotlight

Asian markets are expected to rise modestly on Thursday despite Wall Street gains as investors become more confident that the US Federal Reserve may cut interest rates this year to support an economy affected by the ongoing trade war.

Nikkei futures posted a slightly higher opening in Japan, while Australia's currency futures traded at levels similar to the last closing of the ASX 200 benchmark, at 6 358.50.

Markets in South Korea are closed for a public holiday.

Analysts said markets were already starting to look into the possibility of rate cuts after Fed Chairman Jerome Powell said the US central bank would keep an eye on the national economy and make the needed to "support growth".

In the currency market, the USdollar index, which measures the greenback versus a basket of its competitors, traded for the last time at 97.32, lower than the value of 98, 00 reached the previous week.

The Japanese yen, considered a safe haven badet, traded at 108.27 for a dollar, strengthening from near 109.90 levels last week. Meanwhile, the Australian dollar has changed hands at 0.6972 USD from nearly 0.6920 USD before.

Oil prices dropped overnight, following an unexpected rise in crude oil inventories in the United States. US futures contracts fell 3.4% to $ 51.68 per barrel, while Brent, the international benchmark, fell 2.2% to $ 60.63.

Crude inventories rose 6.8 million barrels, while badysts expected a draw of 849,000 barrels, Reuters reported.