Asian stocks rebound ahead of pivotal Fed decision

Asia-Pacific index gains 0.5% to snap four-day losing streak as US 10-year yield steadies near 5%; markets price 93% chance of 25-basis-point Fed hike SINGAPORE: Asian stocks edged higher on Wednesday, snapping a four-day losing streak as the global bond selloff eased and oil prices retreated, while investors awaited a pivotal US Federal Reserve interest-rate decision later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5% after a shaky start, led by gains in South Korean and Taiwanese equities. Japan's Nikkei 225 advanced 0.3%, while S&P 500 e-mini futures gained 0.2%. US Treasury yields also stabilised following the recent selloff. The benchmark 10-year yield was little changed at 4.9938% after attempting to retest 5%, a level it breached on Tuesday for the first time in three years. Attention is now focused on the Federal Reserve, with traders pricing a 93% probability of a 25-basis-point rate increase, up sharply from 61.2% a week earlier. JPMorgan analysts said the market consensus was for a quarter-point hike with little forward guidance. They said the meeting could allow markets to reset rate-hike expectations, while warning that keeping rates unchanged could raise concerns about the Fed's credibility. Wall Street had closed lower overnight as rising Treasury yields, higher crude prices and debate over the pace of artificial intelligence development weighed on sentiment. The S&P 500 declined 0.5% for its second consecutive session of losses, while the 10-year Treasury yield reached its highest level since 2007. The US dollar index edged 0.1% lower to 99.601 after approaching a two-week high. Oil prices also provided some relief to markets in Asian trading. Brent crude futures fell 0.6% to $108.13 a barrel after jumping 2.9% on Tuesday amid disruptions to Saudi Arabian crude exports from the Red Sea port of Yanbu. Cryptocurrencies steadied following a selloff after the US Senate voted against advancing comprehensive cryptocurrency legislation. Bitcoin slipped 0.1% to $75,821.94, while ether declined 0.2% to $2,402.12.