Asian Stocks Wobble Ahead of Fed Rate Decision

Asian stocks struggled on Wednesday as investors prepared for an expected interest rate hike by the Federal Reserve. The Fed's decision is widely tipped to lift borrowing costs, which has dealt a heavy blow to the rally in global equities.

The Asian markets were mixed, with Tokyo, Shanghai, Sydney, and Manila falling. However, Hong Kong, Singapore, Wellington, Taipei, and Jakarta fell slightly less.

Traders are pricing a more than 90 percent chance that board members choose to tighten monetary policy. The Fed's decision is expected to be influenced by data showing strong jobs creation and stubbornly high inflation.

'For traders, the most interesting part of the statement will be the vote, specifically how many of the 12 members (if any) vote to leave interest rates unchanged,' wrote Matt Weller at FOREX.com. He noted that a unanimous decision to raise rates makes another interest rate hike this year more likely.