Asia markets were set to open higher on Wednesday, taking overnight cues from Wall Street where stocks rose to record highs after a rally in tech names lifted the broader market.

Australia’s SPI futures traded at 5,995, which was higher than the ASX 200’s last close at 5,963.52.

Nikkei futures in Chicago traded at 22,665 and Osaka futures were at 22,650. Those pointed to a higher open for the Japanese benchmark index, which finished the Tuesday session at 22,416.48.

In the currency market, the dollar retreated against a basket of currencies in the early hours of Wednesday Asia time. The dollar index traded at 93.977 at 6:04 a.m. HK/SIN, falling from an earlier session high of 94.165.

Among currency majors, the Japanese yen traded at 112.48 to the dollar, which was slightly stronger than the 112.6 level it traded near on Tuesday afternoon local time.

The Australian dollar traded at $0.7577, while the euro fetched $1.1737. The common currency struggled to break the $1.176 level since news broke that German Chancellor Angela Merkel’s efforts to form a coalition government had failed. Merkel subsequently said she would prefer going to the polls over leading a minority government.

Meanwhile, currency experts at Swiss bank UBS predicted that the dollar is set to have a disappointing run against the euro in 2018 despite the Federal Reserve continuing its current cycle of rate hikes into next year. While a rise in benchmark rates is usually beneficial for the greenback as more people flock to U.S. assets in anticipation of higher yields, UBS said it believes the euro will out-muscle anything the dollar does next year.

Oil prices rose slightly on Tuesday ahead of next week’s OPEC meeting in Vienna, where producers are set to decide if they will extend an output cut beyond March 2018 to tackle a supply glut.

U.S. crude added 0.7 percent, or 41 cents, to $56.83 per barrel, while global benchmark Brent rose 0.6 percent, or 35 cents, to $62.57.

— CNBC’s Holly Ellyatt contributed to this report.