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

markets.

The perfect storm of higher bond yields, corporate jitters and

rising price pressures that hit Wall Street on Tuesday looks set

to darken the Asian market landscape on Wednesday, as investors

wonder whether this might be the start of a deeper correction.

Asia's economic calendar has some top-tier releases in the

shape of Chinese and Japanese service sector purchasing managers

index data, but the market tone on Wednesday will probably be

set by the latest tightening of global financial conditions.

The 10-year U.S. Treasury yield hit 4.40% and Brent crude

touched $89 a barrel on Tuesday - both the highest levels this

year - and Tesla shares slumped 5% after the company announced

the first fall in quarterly deliveries for nearly four years.

The three main U.S. indexes shed 0.7% to 1.0%, and the S&P

500 clocked its biggest fall in a month. This doesn't bode well

for Asia on Wednesday, but there is a 'glass half full' argument

to be made.

In some ways, Wall Street held up pretty well in light of

the break out in yields, back up in implied rates and renewed

talk of 'bond vigilantes' coming back to stalk the bond market.

A decline of 1% or less, on the heels of a relentless rally

culminating in last week's record highs, is small beer.

Still, there are plenty reasons to be cautious.

The threat of currency market intervention from Japanese

authorities to support the beleaguered yen refuses to lift, as

the yen continues to hover close to the 152.00 per dollar level.

Recent moves in China's currency are also worth noting. The

offshore yuan is creeping above the upper limit of the 2% band

around the central bank's daily fixing rate. This comes ahead of

U.S. Treasury Secretary Janet Yellen's return to China later

this week for renewed dialogue with top officials in Beijing.

China's 'unofficial' Caixin services PMI data on Wednesday

rounds off a surprisingly strong set of PMI reports that has

fueled hopes that the world's second largest economy is finally

picking up momentum.

Ironically, however, this renewed optimism, together with

punchy U.S. manufacturing PMIs, has helped put upward pressure

on global bond yields, which in turn has put downward pressure

on stocks.

World markets may be back in a 'good news is bad news'

mindset.

Alibaba shareholders may be asking themselves a similar question

after the Chinese e-commerce giant said on Tuesday it conducted

a $4.8 billion share buyback in the three months to March, its

second biggest quarterly buyback ever.

Hong Kong-listed shares rose 1%, but U.S.-listed shares fell

0.7%.

Here are key developments that could provide more direction

to markets on Wednesday:

- China Caixin services PMI (March)

- Japan services PMI (March)

- Hong Kong retail sales (February)