Asia Markets Rally on Relief Ahead of Fed Rate Decision

Markets in Asia staged a relief rally on Thursday as investors awaited fresh signals from the US Federal Reserve about potential interest rate hikes. The Fed's Board Governor Christopher Waller is set to speak after President John Williams tempered expectations of a hike this month, citing rising long-term bond yields as a reflection of a solid economy.

The market's focus is on Friday's pivotal US payrolls report, which follows disappointing private labour data for August. Traders have increased bets on a Fed rate hike, with a roughly two-in-three chance assigned to a 25-basis-point increase this month, up from 37% a week ago.

US Treasury yields eased from multi-year highs overnight, while Japanese government bond yields slid from historic peaks ahead of an auction of super-long debt in Tokyo. Oil prices edged lower due to uncertainty over renewed military strikes between the US and Iran.