Asian stocks were poised to edge higher Wednesday, even as surging oil prices and rising bond yields keep traders on edge ahead of the Federal Reserve’s interest-rate decision. Equity-index futures pointed to modest gains in Japan, Hong Kong and Australia at the open, while those for South Korea were little changed. Contracts for US stocks opened in the green after the S&P 500 and Nasdaq 100 both slipped for a second straight session on Tuesday.

US oil traded 0.4% lower in early Asia trading on Wednesday after Brent crude settled near $109 per barrel. The US 10-year yield rose as high as 5.04%, before retreating to 5.00%. Longer-dated Treasuries extended declines after a weak $13 billion sale of 20-year bonds. The dollar rose for a second day. Elsewhere, Bitcoin extended a slump as the US Senate blocked a landmark crypto market structure bill.

The Fed’s decision on Wednesday is being closely watched after last week’s hotter-than-expected core inflation data fueled expectations for the first rate increase in around three years. A higher policy rate would add to pressure on equities already facing elevated energy and borrowing costs.

“If the Fed follows the futures market and hikes rates, our sense is that stocks are likely to see downward pressure over the near-term,” said Chris Senyek at Wolfe Research. “However, we’ve found that over a longer time horizon — six to 12 months after the first rate hike — stocks typically recover and push into positive territory.”

Three major central banks meet this week, with the Fed followed by policy decisions from the UK and Japan, potentially reshaping the monetary-policy outlook for the rest of 2026.