Asian Stocks Waver Ahead of Expected US Interest Rate Hike

Asian stocks struggled on Wednesday as investors prepared for an expected interest rate hike by the Federal Reserve, despite a slight dip in oil prices.

The Fed is widely tipped to lift borrowing costs for the first time since 2023 due to inflation still running above the central bank's target and the Middle East crisis keeping crude prices above $100 a barrel.

Fed boss Kevin Warsh's hawkish speech at Jackson Hole, Wyoming, in August ramped up bets on an increase, and data showing strong jobs creation and stubbornly high inflation have cemented expectations.

Traders are pricing a more than 90 percent chance that board members will choose to tighten monetary policy, with 10-year US Treasury yields above five percent for the first time since 2007.