Asian Stocks Edge up as Fed Hike Odds Climb to 92.4 Percent

Asian equity markets opened with slight gains on Wednesday. The MSCI Asia-Pacific index rose 0.2 percent. This followed a second consecutive day of losses for the S&P 500. Traders are focused on the upcoming Federal Reserve decision.

Korean shares led the regional advance with a 0.8 percent gain. S&P 500 e-mini futures were up 0.1 percent. The U.S. 10-year Treasury yield stood at 4.9875 percent. It dropped 0.8 basis points after breaching the 5 percent mark on Tuesday.

Federal Reserve rate hike probability

Market participants expect a rate increase from the Federal Reserve. The CME Group FedWatch tool shows a 92.4 percent probability of a 25 basis point hike. This figure rose from 59.4 percent one week ago. Fed Chair Kevin Warsh will hold a media conference after the decision.

The U.S. dollar index traded near a two-week high at 99.656. This reflects the strength of the greenback against a basket of six currencies. Rising yields have supported the dollar despite cautious equity sentiment.

Oil prices pause after jump

Brent crude futures fell 0.6 percent to 108.08 dollars a barrel. This followed a 2.9 percent rise on Tuesday. Shipping sources reported suspended crude loadings at Saudi Arabia's Yanbu hub. Riyadh also cancelled some cargo deliveries to European customers.

Digital assets continue to decline

Bitcoin lost 0.1 percent to 75,816.24 dollars. Ether slipped 0.2 percent to 2,403.27 dollars. The U.S. Senate voted against advancing comprehensive cryptocurrency legislation. This regulatory uncertainty weighed on digital asset prices. GN auto markets/indices noted these shifts in the broader market context.