Australian shares rise on energy boost, Fed decision in focus

Australian shares edged higher on Wednesday, with energy companies leading gains as crude prices stayed firm. Traders were also following Middle East events while anticipating the Fed's announcement later that day. According to Business Recorder, the S&P/ASX 200 added 0.3%, reaching 8,699 at 0003 GMT, which reversed part of Tuesday's 0.9% decline.

Crude futures slipped after US stockpiles unexpectedly rose, although prices had climbed to a peak since May 19 the prior session. Concern grew over a key oil export route in the Middle East, where a string of incidents suggested disruption might last for weeks. Traders also weighed whether dearer oil could feed into inflation and push central banks toward tighter policy.

Markets widely expected the Federal Reserve to lift rates by 25 basis points later that day, based on CME Group's FedWatch tool, with the probability at 59.4% a week before. Australian 10-year bond yields eased but stayed near their 2011 peaks. Energy names Santos and Woodside rose 2.2% and 2.6%, while Reliance Worldwide jumped 7.4% after accepting a takeover bid of roughly $2.9 billion from Brookfield.