Asian Markets Hold Breath as Fed Decision Looms

Asian markets began trading cautiously on Wednesday as investors await the Federal Reserve's policy decision later in the day. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%, led by a 0.8% gain in Korean shares.

The S&P 500 e-mini futures nudged 0.1% higher, while the S&P 500 had slumped 0.5% overnight on Wall Street, its second consecutive day of declines. The yield on the 10-year Treasury bond hit its highest level since 2007, at 4.9875%, ahead of the rate decision.

Traders believe a hike from the Federal Reserve is almost assured, with an implied 92.4% probability of a 25-basis-point hike, according to the CME Group's FedWatch tool. The U.S. dollar index was trading near a two-week high at 99.656.

Oil prices slipped in Asian trade, with Brent crude futures down 0.6% at $108.08 a barrel, after rising 2.9% on Tuesday due to concerns over Saudi Arabian oil exports.