Asian stocks trade mixed ahead of the Fed

• Major Asian indices lack clear bias, possibly due to caution ahead of the Fed.
• Fed may drop a hint of a June rate hike.
• The probability of four Fed rate hikes this year has doubled in the last few weeks.

Asian markets are lacking clear direction today as investors await the Fed's view on interest rates, inflation, and the economy.

Scorecard

• Japan's Nikkei is reporting 0.20 percent drop.
• Australia's S&P/ASX 200 is up 0.60 percent.
• Chinese stocks are down 0.17 percent.
• Hang Seng has shed 0.55 percent.

Focus on Fed

The central bank is widely expected to keep interest rates unchanged. However, the probability that the Fed would hike rates three more times this year has doubled in the last four weeks or so. Hence, investors will be on the lookout for signals on a June rate hike.

Kathy Lien from BK Asset Management believes the Fed will hint at a rate hike today if it is serious about raising rates in June. Hawkish Fed could send Treasury yields higher, triggering another round of rising yield-led risk aversion in the equities.