Asian stocks and bonds were set to rise, tracking a Wall Street rally as a pullback in oil prices eased inflation concerns and helped revive appetite for risk. The yen was steady ahead of the Bank of Japan's rate decision.

Equity-index futures for Japan, South Korea and Australia all pointed to gains at the open. US stock contracts were little changed after underlying benchmarks posted their biggest advance in six weeks, with the S&P 500 rising 1.1% and the tech-heavy Nasdaq 100 gaining 1.7%. A key gauge of chipmakers jumped 3.1%.

Julian Emanuel, chief equity and quantitative strategist at Evercore ISI, discusses the market implications of the Federal Reserve hiking interest rates for the first time in three years. He explains why investors should "rebalance a little bit" from stocks into fixed income.