* European stocks set for best day in nearly two months
* NASDAQ futures edge up after selloff in high caps
* Dollar hits highest in over two weeks
* Oil at near 7-wk high
By Tom Arnold and Wayne Cole
LONDON/SYDNEY, May 5 (Reuters) - Global shares edged up on Wednesday as U.S. stock futures steadied after a pullback in tech darlings while European markets were buoyed by accelerating business activity and positive earnings.
The Euro STOXX index added 1.3%, heading for its best day in nearly two months, helped by data showing euro zone business activity quickened last month, while the services industry returned to growth.
Top performers included Germany's Rational and Merck after well-received numbers.
The MSCI world equity index, which tracks shares in 49 countries, was trading 0.1% higher after a sell-off on Tuesday from near record highs.
It wasn't all rosy, however. MSCI's broadest index of Asia-Pacific shares outside Japan sank 0.4% for its fourth consecutive day of losses, although Asian trading was thin due to holidays in Japan, China and South Korea.
India's Nifty 50 was 0.8% higher and headed for its best day in a week as the central bank rolled out a series of measures to support the coronavirus-ravaged economy, including allowing certain small borrowers more time to repay loans.
Nasdaq futures were up 0.4% after a sharp fall overnight, while S&P 500 futures also added 0.3%.
The Nasdaq had dropped 1.9% on Tuesday as some big tech names ran into profit-taking, including Microsoft Corp, Alphabet Inc, Apple Inc and Amazon.com Inc .
Stretched valuations were tested when U.S. Treasury Secretary Janet Yellen said rate hikes may be needed to stop the economy overheating.
She later walked back the comments, but it reminded investors that rates would have to rise at some point in the future.
"Some of her comments were seemingly misinterpreted by markets as her suggesting the Fed would need to hike," said James Athey, investment director at Aberdeen Standard Investments.
"This market really is just as febrile and fragile as that."
The next focal point for markets looms on Friday when U.S. payrolls data are forecast to show a hefty rise of 978,000, while some estimates go as high as 2.1 million.
So far, Federal Reserve Chair Jerome Powell has argued the labour market is still far short of where it needs to be to start talking of tapering asset buying.
Minneapolis Fed Bank President Neel Kashkari, a notable dove, on Tuesday said it may take a few years for the economy to get back to full employment.