Traders await China and India inflation data, causing Asia-Pacific markets to pause.

• The anticipated increase in China's May inflation rate is predicted to be slightly higher than the 0.3% recorded in April, reaching 0.4%.
• Inflation data for India and Japan is anticipated, with headline inflation figures and corporate inflation numbers for May to be released respectively.

Inflation data from China and India will be released before the Asia-Pacific markets open lower on Wednesday.

The U.S. Federal Reserve's decision on Wednesday will be closely watched by traders in Asia, following the release of the country's May inflation report.

The anticipated increase in China's May inflation rate is predicted to be 0.4%, slightly higher than the 0.3% recorded in April.

The Reuters poll of economists predicts that India's inflation rate will increase marginally to 4.89%, higher than the 4.83% increase recorded in April.

The S&P/ASX 200 futures for Australia were at 7,727, a slight decrease from its previous close of 7,755.4.

The futures market in Japan is predicted to have a weaker opening, with both Chicago and Osaka futures contracts at 38,910, compared to the previous close of 39,134.79.

Since September 2023, Japan's corporate goods inflation index is predicted to rise by 2%, marking its fastest rate of growth.

The Hang Seng index futures in Hong Kong were at 18,018, which was below the HSI's previous close of 18,176.34. At this point, the index would reach its lowest level since April 30.

In the U.S., the S&P 500 and Nasdaq Composite reached new closing highs overnight, with Apple driving the surge as it hit a record high.

While the broad market index gained 0.27% to close at 5,375.32, the Nasdaq Composite added 0.88% to end at 17,343.55. However, the S&P 500 lost 0.31%.

On Tuesday, investors were observed selling profits in Nvidia, the leading AI company, and shifting their investments to emerging AI player Apple, which recently unveiled new features that could trigger a surge in iPhone upgrades, according to analysts.

During the session, Apple's iPhone maker reached a new record high, increasing by nearly 7.3%, while Nvidia experienced a 0.7% loss.

— CNBC's Lisa Kailai Han and Alex Harring contributed to this report.