July 3 (Reuters) - A look at the day ahead in Asian

markets.

Third time lucky for Asian stocks?

Having followed Monday's listless start to the quarter with a

0.5% decline on Tuesday, Asian stocks are poised to rebound on

Wednesday thanks to a triple-boost from tech-fueled rise in U.S.

and global stocks, falling Treasury yields and a weaker dollar.

That's as positive a global backdrop as investors in Asian

equities can expect, although it may be altered by the slew of

service sector purchasing managers index reports from around the

continent including economic powerhouses China and Japan.

Cross-asset volatility should provide a helping hand too - the

VIX index slipped to a five-week low on Tuesday and currency

market vol eased across the board. Even overnight and one week

dollar/yen vol fell, suggesting investors are not overly

concerned about the prospect of Japanese intervention.

Tuesday's market-friendly conditions were in large part laid by

Federal Reserve Chair Jerome Powell's comments at the ECB's

annual policy conference in Sintra, Portugal. While the Fed

needs more data before cutting interest rates, the U.S. is back

on a "disinflationary path," Powell said.

Bond yields retraced some of Monday's steep rise, the dollar

dipped, and stocks rose - a collective easing of financial

conditions that is usually good for risk appetite and emerging

market assets.

The tech sector was a solid performer on Wall Street again, with

Tesla shares up 9% to a fresh six-month high and bringing the

gains so far this week up to 15%. Having significantly lagged

most Big U.S. Tech this year, they are on track for their best

week in 18 months.

Investors cheered the fact that the automaker reported a

smaller-than-expected 5% drop in vehicle deliveries in the

quarter, and analysts said that sales in China were higher than

expected too.

Strength across the broader tech complex and especially in

mega caps pushed the NYSE FANG index to another record high on

Tuesday. Can this feelgood factor spread to Asia? It hasn't

lately, and Asian tech has underperformed badly in recent weeks.

The Hang Seng tech index fell again on Tuesday - its seventh

decline in eight sessions - to its lowest since April 24. It has

lost 15% since mid-May, in which time the S&P info tech index

has risen 15%.

Time for a bounce on Wednesday?

On the economic front, the calendar on Wednesday will be

dominated by service sector PMIs from China, Japan, Australia,

Singapore and India.

China's is the 'unofficial' Caixin PMI index, which shows that

services activity expanded in May at its fastest pace since July

last year and has been consistently growing since January 2023.

Here are key developments that could provide more direction

to markets on Wednesday:

- China, Japan, India, Australia services PMIs (June)

- Euro zone services PMI (June)

- South Korea FX reserves (June)