Asian shares waver as oil and yields rise ahead of Fed, BOJ meetings

Asian shares wavered on Tuesday (Sep 15) amidst rising oil prices and bond yields, as investors grappled with Middle East tensions and calls for a slowdown in AI development. The Yemen-based Iran-aligned Houthis attacked Saudi Arabia, and Gulf Arab states postponed talks with Iran due to pipeline disruptions that could affect up to 4% of global oil supply.

US crude surged 1.27% to $102.68 a barrel, while Brent climbed 1.21% to $106.96 per barrel. Analysts forecast higher interest rates as markets remain cautious about the risk of inflationary pressures. MSCI's Asia-Pacific index dipped 0.12%, and Japan's Nikkei edged 0.19% higher after a drop the previous day. South Korean shares recovered from earlier losses, driven by bargain-hunting in chip stocks.

The Federal Open Market Committee begins its two-day meeting, with a 90% chance of a rate hike, while Japan's central bank is expected to raise rates by 25 basis points.