Asian Stocks Slide as Oil Prices Surge Ahead of Key Central Bank Meetings

Asian stocks declined on Tuesday due to rising oil prices and higher bond yields ahead of key central bank meetings in the US and Japan.

The US Federal Reserve's two-day meeting began, with markets pricing in a 90% chance of a rate hike that would mark the Fed's first increase since mid-2023. Analysts at Morgan Stanley expect a 25 basis-point hike on Wednesday and in December, citing concerns about inflation, energy prices, and AI-related investment.

The Bank of Japan is also expected to raise its interest rate by 25 basis points to 1.25% at the end of its two-day meeting on Friday, signaling more tightening ahead. The decision aims to shore up the yen after intervention helped steer the currency away from a 40-year low.