• Asian stocks witnessed a muted trading action on Wednesday amid China's economic woes.
• Australia's ASX 200 is among the best performers amid reduced bets for more RBA rate hikes.
• Traders look to the prelim US GPD print for some impetus ahead of Chinese PMI on Thursday.

Most Asian stocks took cues from the overnight positive close on Wall Street, though gains were limited amid concerns over the worsening economic outlook in China. Traders also seem reluctant to place aggressive bets ahead of key economic readings from China and the United States (US).

The official Chinese PMI data is due for release on Thursday and is expected to show a sustained declining trend in the country's manufacturing sector activity. This comes on the back of growing worries about a property market crisis in the world's second-largest economy and keeps a lid on the latest optimism led by expectations for an early pivot by the Federal Reserve (Fed).

In fact, Fed Governor Christopher Waller – a noted hawk – said on Tuesday that he was increasingly confident that policy is currently well positioned to slow the economy and get inflation back to the central bank's 2% target. Waller added that the easing inflation could allow the Fed to start cutting interest rates in 2024, which boosted investors' appetite for riskier assets.

Australia’s ASX 200 Index, meanwhile, is among the better performers for the day on the back of softer domestic consumer inflation figures, which lifted hopes that the Reserve Bank of Australia (RBA) will not raise rates any further. The CPI, however, remains well above the RBA’s target range, suggesting that the central bank is likely to keep interest rates higher for longer.

Moving ahead, investors now look to the prelim US GDP report, due for release later during the early North American session, which is expected to show that the economy grew by a 5% annualized pace as against the 4.9% estimated originally. The key data might influence the risk sentiment ahead of the US Core PCE Price Index – the Fed's preferred inflation gauge on Thursday