Asian Markets Edge Higher Ahead of Federal Reserve Rate Decision

Asian markets began the day on a tentative note as investors wait for the Federal Reserve's policy decision. The MSCI index of Asia-Pacific shares outside Japan rose by 0.2%, led by a gain of 0.8% in Korean stocks.

The market's cautious mood is attributed to recent rises in global bond yields and oil prices, which have paused ahead of the Fed's announcement. The yield on the U.S. 10-year Treasury bond has reached its highest level since 2007 at 4.9875%, just below the 5% mark.

Traders expect a rate hike from the Federal Reserve, with an implied probability of 92.4% according to the CME Group's FedWatch tool. This is up from 59.4% last week, indicating a high likelihood of a 25-basis-point increase in interest rates.