Updates with comment, refreshes prices

By Tom Westbrook and Amanda Cooper

LONDON/SINGAPORE, Feb 1 (Reuters) -Global stocks edged up on Wednesday as signs of slowing U.S. wage growth supported expectationsthat the Federal Reserve could signal an end to interest-rate hikes at its meeting later in the day.

Wall Street indexes had rallied, as had bonds to a lesser extent, while the dollar gave up gains overnight when the Fed's preferred wages gauge, the U.S. employment cost index, showed a 1% rise last quarter, its smallest increase in a year.

The MSCI All-World index .MIWD00000PUS was last up 0.2% on the day, having ended January with a 7% gain, thanks in large part to investors growing more optimistic about the outlook for global inflation and interest rates.

The Fed will announce its rate decision at 1900 GMT, followed by a news conference with Chair Jerome Powell.

Interest-rate markets have priced in a slowdown in the cracking pace of hikes, with Wednesday's expected 25 basis point (bps) hike seen bringing the Fed funds rate target range to 4.5-4.75%. 0#FF:

Barring surprises, the focus will be on Powell's tone. Investors will be trying to gauge whether and how hard he would pushback on market pricing for rate cuts beginning as soon as the second half of this year.

"The market is anticipating some pushback from Powell, although it's difficult to pin down how much is enough to convince the market," said Brian Daingerfield, head of G10 currency strategy at NatWest Markets.

"Anything short of Powell going 10 for 10 hawkish may ultimately be seen as being not hawkish enough. Conversely, the market may take even the smallest dovish concession and run with it."

Strategist at ING said economic data should play a greater role inshaping investor expectations for monetary policy.

"One of the reasons is that central banks are purposefully behind the curve," Padraig Garvey, who is ING regional head of research for the Americas, said.

"Their past mistake in anticipating the inflation surge means they're unlikely to acknowledge it is going back to target until they have a much higher degree of confidence than now," he said.

"The other reason is that markets are correctly priced for the next few meetings."

In Europe, the STOXX 600 .STOXX rose 0.2%, catching a lift from healthcare stocks including Danish pharma company Novo Nordisk NOVOb.CO and London-listed rival GSK GSK.L, which reported results.

Currency markets have also been treading water in the run-up to theFed meeting, and ahead of the Bankof England and European Central Bank meetings on Thursday.

The dollar dropped for a fourth straight month in January, and lost 1.5% on the euro EUR=EBS and 0.8% on the yen JPY=EBS. The euro was last up 0.2% at $1.0882, while against the yen, the dollar fell 0.2% to 129.81.

U.S. Treasuries were cautiously firmer in Asia, with benchmark 10-year yields US10YT=RR down 2 bps to 3.5069%. S&P 500 futures ESc1 fell 0.3%.

EARNINGS, ECONOMICS

Japan's factory activity contracted for a third straight month in January, a private survey showed, while South Korea posted a record monthly trade deficit for January, mainly due to a far worse-than-expected drop in exports.

Facebook owner Meta META.O reports earnings later on Wednesday. Company executives had struck a cautious tone at earnings calls on Tuesday as a slowdown looms. .N

Exxon XOM.N posted a record $59 billion adjusted profit, though Caterpillar CAT.N and McDonald's MCD.N shares fell as the companies warned of inflation squeezing profit margins.

In commodity markets, optimism for demand supported oil prices and Brent crude futures LCOc1 rose 0.1% to $85.57 a barrel, whilegold XAU=, which rallied on the dollar's weakness through January, fell 0.2% to $1,923.84 an ounce.

Indian conglomerate Adani Group, meanwhile, remained under pressure, with its flagship AdaniEnterprises ADEL.NS shares down 3% and below the lower end of the offer price for a $2.5 billion stock sale that ended on Tuesday.

Prices for dollar bonds in Adani Group companies steadied after last week's rout.

Reporting by Tom Westbrook and Amanda Cooper; Editing by Jamie Freed, Kim Coghill and Arun Koyyur

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