Asian Stocks Steady Ahead of Fed Rate Decision Amid Oil Price Volatility

Asian stocks remained steady on Wednesday as investors waited for the US Federal Reserve's interest rate decision. The MSCI's Asian equities index rose by 0.1% in early trading, while futures contracts for Wall Street gauges nudged up slightly.

The S&P 500 and Nasdaq 100 had slipped the previous day, but a gauge of chipmakers eked out an increase. Among the main moves in markets, S&P 500 futures rose by 0.1%, Hang Seng futures rose 0.3%, Japan's Topix climbed 0.6%, and Australia's S&P/ASX 200 advanced 0.2%.

US crude oil prices fell 0.6% to $105.15 a barrel, while the 10-year Treasury yield reached its highest level in almost two decades at 5.04%. The rally in energy prices and growing bets on a Fed rate hike had fuelled a bond sell-off.

Bitcoin extended its slide, trading around $75,600 after the US Senate blocked a landmark crypto market structure bill. The Fed's decision is expected to be pivotal, with markets pricing in a more than 90% chance of a hike.

Analysts believe that if the Fed follows the futures market and hikes rates, stocks may see downward pressure over the near term. However, they also predict that over a longer time horizon - six to 12 months after the first rate hike - stocks typically recover and push into positive territory.