Asian markets make nervous start ahead of Fed decision

Asian markets opened cautiously on Wednesday, a day before the Federal Reserve's policy decision, as bond yields and oil prices showed signs of stabilization. The MSCI's Asia-Pacific index, excluding Japan, experienced mixed results after four consecutive declines and ended the session with a 0.2% increase, buoyed by a 0.8% rise in Korean shares.

S&P 500 e-mini futures edged up by 0.1%. On Wall Street, the S&P 500 tumbled 0.5% for a second straight day, driven by the 10-year Treasury bond yield reaching its highest point since 2007, just before the Federal Reserve's decision and Fed Chair Kevin Warsh's media conference. Tony Sycamore, a market analyst at IG in Sydney, noted that the market's cautious stance was influenced by the Fed's potential interest rate hike, with a 92.4% probability, up from 59.4% a week prior.

The U.S. dollar index approached a two-week high of 99.656, while oil prices dipped as trading resumed in Asia, Brent crude futures falling 0.6% to $108.08 per barrel. Digital assets continued their downward trend following the U.S. Senate's vote to reject comprehensive cryptocurrency legislation. Bitcoin fell 0.1% to $75,816.24, and ether declined 0.2% to $2,403.27.