SINGAPORE - A slide in US Treasury yields dented the dollar on Wednesday, and oil prices also struggled as worries over the outlook for the world's largest economy grew, while Asia shares rose ahead of AI darling Nvidia's earnings later in the day.

US copper prices surged more than 4 percent while those elsewhere fell overnight after President Donald Trump on Tuesday ordered a probe into potential new tariffs on copper imports.

Data on Tuesday showed US consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February - the latest in a string of surveys suggesting that businesses and consumers were becoming increasingly rattled by the Trump administration's policies.

Traders reacted by ramping up bets of more Federal Reserve rate cuts this year, with futures now pointing to nearly 60 basis points worth of easing priced in by year-end, up from about 40 bps a week ago.

"We're not surprised that we're getting these weak consumer confidence numbers. What we are surprised about, though, is that we're getting them now, before consumers see the impact of tariffs," said Joseph Capurso, head of international and sustainable economics at the Commonwealth Bank of Australia (CBA).

US Treasury yields came under pressure on Wednesday due to the heightened Fed easing bets, with the benchmark 10-year yield languishing at a more than two-month low of 4.2830 percent.

The two-year yield fell 1 bp to 4.0860 percent.

That in turn weighed on the dollar, particularly against the yen. The greenback last traded 0.13 percent lower at 148.81 yen, after bottoming at an over four-month low in the previous session.

The euro hovered near a one-month high at $1.0522, while sterling was similarly within striking distance from a two-month top and last bought $1.2675.

"What we're seeing is the dollar weakens because of this soft economic data, but at some point, you hit a threshold where you get safe-haven flows into the US dollar," said CBA's Capurso. "So if things get really, really bad in America, let's say the market starts pricing in a recession or something close to a recession, the US dollar always goes up."

Fears of slowing US growth also cast a shadow over the outlook for oil demand.

Brent futures were up 0.34 percent to $73.27 a barrel having fallen more than 2 percent in the previous session, while US West Texas Intermediate (WTI) crude rose 0.36 percent to $69.18 per barrel, reversing some of Tuesday's 2.5 percent slump.

Elsewhere, gold similarly ticked up on Wednesday owing to some safe haven flows, rising 0.1 percent to $2,918.50 an ounce.

Asia shares upbeat

In stocks, MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.63 percent on Wednesday, helped by a rally in Chinese markets.

Hong Kong's Hang Seng Index surged more than 2 percent, with the Hang Seng Tech index also rising 2.7 percent.

The CSI300 blue-chip index ticked up 0.54 percent, while the Shanghai Composite Index gained 0.7 percent.

Chinese stocks have been on a tear over the past few weeks, driven by DeepSeek's AI breakthrough that reignited investor interest in China's technology capabilities.

However, the rally hit a speed bump earlier this week on news that the Trump administration plans to tighten semiconductor curbs on China and after the US President signed a memorandum directing the Committee on Foreign Investment in the US to restrict Chinese investments in strategic areas.

"It is recklessly complacent to brush off all tariff threats from the US as a bluff that is meant as leverage," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho.

"Especially not in China's case. Fact is, the US intends to inflict significant industrial pain that compromises technological advantage and manufacturing clout or capacity."

Elsewhere, Japan's Nikkei fell 1.15 percent.

US stock futures rebounded after a mixed session on Wall Street, with Nasdaq futures rising 0.34 percent, while S&P 500 futures gained 0.2 percent.

EUROSTOXX 50 futures similarly edged 0.37 percent higher, while FTSE futures tacked on 0.46 percent.

AI poster child Nvidia reports its quarterly earnings later on Wednesday, which could offer clarity on demand and justify the sector's lofty valuations.

Investor skepticism has grown over the billions that US tech firms have channeled into AI infrastructure due to slow payoffs and breakthroughs at China's DeepSeek.

"Any signs of weakness in Nvidia's report could have outsized effects on investor sentiment towards AI stocks as a whole," said Saxo's global head of investment strategy Jacob Falkencrone.

"This earnings report isn't just about Nvidia ... it's about whether the AI revolution can maintain its breakneck pace."