Five Things You Need to Know to Start Your Day: Asia

Good morning. Traders brace for the Federal Reserve rate decision. Saudi Arabia resumes defense talks with the US. The IMF's growth outlook brightens. Here’s what’s moving markets. — Isabelle Lee

The Fed is slated to conclude its two-day meeting where policymakers are expected to hold interest rates steady as inflation appears to be on the glide path down to their 2% target. Traders have trimmed bets on a rate cut in March, pricing in just about a one-in-three chance, after a report on US job openings highlighted labor market strength. While so-called immaculate disinflation looked unlikely for most of last year, expectations for a soft landing have only grown of late, creating a “nice” dilemma for the Fed, according to Bloomberg Opinion. US stocks were mixed on Tuesday, and a giant ETF tracking the tech-heavy Nasdaq 100 dropped in late trading after Microsoft reported revenue that topped estimates but cloud growth fell short, while Alphabet’s search advertising businesses disappointed.