Asian stocks gain as investors await Federal Reserve policy decision

Asian stock markets edged upward on Tuesday as investors awaited the outcome of the Federal Reserve's monetary policy decision, with sentiment supported by a pause in oil price movements and stabilization in bond yields. The gains suggested regional bourses were drawing some support from technical factors, even as overnight losses on Wall Street signaled broader market caution.

Wall Street retreated on Monday, with the S&P 500 sliding 0.5 percent to mark its second straight day of declines. The selloff was accompanied by a sharp move in fixed income markets, as the yield on the 10-year U.S. Treasury bond climbed to its highest level since 2007, reflecting concerns about inflation and the Federal Reserve's inflation-fighting stance.

The elevated Treasury yields have weighed on equities globally, particularly in Asia where many investors remain sensitive to movements in U.S. interest rates. However, some analysts suggested that clarity from the Federal Reserve could help stabilize markets by reducing uncertainty about the central bank's future policy path.

Energy markets also steadied, providing a modest tailwind for regional sentiment. Oil prices had come under pressure in recent sessions but held relatively stable ahead of the Fed's announcement, removing a source of volatility for commodity-linked Asian economies.