(Reuters) - Australian shares are expected to edge up on Friday, rebounding slightly from two days of heavy losses, as hopes of policy easing by the U.S. central bank gained momentum.
Markets now anticipate the Federal Reserve will cut rates at its October meeting, after a slew of weak data from the United States this week showed its trade spat with China is hobbling the world's biggest economy.
The local share price index futures <YAPcm1> rose 0.5% or 35 points, a 5-point premium to the underlying S&P/ASX 200 index <.AXJO> close. The benchmark dived 2.2% on Thursday to its lowest close in over a month.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> rose 0.3% in early trade.
(Reporting by Anushka Trivedi in Bengaluru; Editing by Chris Reese)
