Asian Stocks Rebound Ahead of Fed Decision Amid Eased Bond Yields

Asian stocks rebounded on Wednesday as bond yields eased ahead of the Federal Reserve's policy decision. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%, snapping a four-day losing streak, with Korean and Taiwanese shares leading the way. The Nikkei 225 increased by 0.3%.

The yield on the U.S. 10-year Treasury bond remained flat at 4.9938% after attempting to retest the 5% mark. Analysts from JPMorgan maintain their cautious view, expecting a 25 basis-point rate hike accompanied by little forward guidance. They warn that inaction could risk institutional credibility.

U.S. President Donald Trump has expressed his preference for lower interest rates, saying last month that the U.S. will stop trading with countries having a trade deficit if the Fed does not cut rates. Despite this, traders have priced an implied 93% probability of a 25-basis-point hike.