Asian Stocks Wobble Ahead of Fed Rate Cut Decision

Asian stocks experienced fluctuations on Tuesday, impacted by the anticipation of the Federal Reserve’s potential outsized rate cut scheduled for Wednesday. Extended holidays in China and South Korea resulted in thin trading conditions. Investors kept a close watch on the Fed’s decision, which has influenced market behavior substantially.

Asian stocks wobbled on Tuesday as the dollar and U.S. Treasury yields faced pressure, just a day before the Federal Reserve's anticipated easing cycle. This potential cycle may result in a substantial rate cut by policymakers.

Holiday closures in China and South Korea led to thin trading conditions, with market eyes trained keenly on the Fed's imminent decision. The likelihood of a 50-basis-point rate cut has increased over the past week, which saw the dollar dip closer to a year-low against the yen and U.S. Treasury yields decline further.

The uncertainty surrounding the Fed's rate cut has kept Asian shares subdued. The broad index of Asia-Pacific shares outside Japan inched up by 0.1%, while Japan's Nikkei slid 0.6%, impacted by tech sector losses.

(With inputs from agencies.)