SYDNEY, July 26 (Reuters) - Asian markets were trading mostly weaker on Wednesday ahead of the U.S. Federal Reserve's expected interest rate rise to be delivered later in the day, as investors also weighed the likelihood of a Chinese economic stimulus package.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was flat, after U.S. stocks ended the previous session with mild gains.
The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 4.8848% compared with a U.S. close of 4.893%.
Australia was the only major market across the Asia Pacific region to see shares rise, with the S&P/ASX 200 index (.AXJO) up 0.81%.
On Wall Street, the three main indices closed higher, led by gains in shares of technology, materials and communication services companies.
Persons:
Karen Jorritsma, Brent, Scott Murdoch, Jamie Freed
Organizations:
SYDNEY, U.S, U.S . Federal, Nikkei, CSI, Dow Jones, Nasdaq, Global, ANZ, RBC Capital Markets, Thomson
Locations:
U.S ., Asia, Pacific, Japan, Australia, Hong Kong, China, Sydney