(Bloomberg) -- Shares in Asia are set to decline after Wall Street fell on renewed concern about the banking sector before a Federal Reserve decision Wednesday where policy makers are expected to raise interest rates.

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Equity futures in Japan, Australia and Hong Kong all declined, while US contracts edged lower in early Asian trade. The S&P 500 slipped 1.2% Tuesday with the financial sector the second-worst performer after energy.

US regional lenders PacWest Bancorp and Western Alliance Bancorp both slid at least 15% just a day after JPMorgan Chase & Co.’s acquisition of First Republic Bank seemed to bolster confidence in the sector.

The decline in energy stocks followed a 5.3% drop for the US oil price, the biggest decline since July, in a sign of unease about global growth. The decline stabilized early Wednesday.

Australian government bonds rose, and New Zealand’s debt edged higher, following a rally in Treasuries. The US two-year note yield fell 18 basis points to below 4% Tuesday, and the 10-year yield slipped 14 basis points to 3.42%. The Bloomberg dollar index dropped.

Job Openings

US data showed a cooling in the labor market, with the number of job openings in March dropping to the lowest level in two years. The decline in available positions comes before the Fed’s interest-rate decision where it is forecast to raise borrowing costs 25 basis points. Market pricing indicates the increase will mark the peak of the tightening cycle before weaker growth prompts the central bank to cut rates later in the year.

“Wall Street is quickly hitting the sell button as banking turmoil appears it is not going away anytime soon,” said Ed Moya, senior market analyst at Oanda Corp. in New York. “Risk appetite did not stand a chance as traders focused on lingering doubts over the regional banks, rising recession odds, and growing risks that the US could default on its debt next month.”

A plan to resolve the US debt ceiling issue was no closer after Janet Yellen said Monday the US may run out of money at the start of next month, underscoring the uncertain mood.

Advanced Micro Devices Inc., the second-largest maker of computer processors, announced a lackluster sales forecast in its first-quarter earnings report. Ford Motor Co. beat profit estimates and Starbucks Corp. beat sales estimates as US and China transactions increased.

Key events this week:

• ADP employment, S&P global US services PMI, ISM services, Wednesday

• Fed Chair Jerome Powell holds news conference following rate decision, Wednesday

• US initial jobless claims, trade balance, Thursday

• European Central Bank rate decision, followed by ECB President Christine Lagarde’s news conference, Thursday

• US unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 7:14 a.m. Tokyo time. The S&P 500 fell 1.2%

• Nasdaq 100 futures fell 0.1%. The Nasdaq 100 fell 0.9%

• Nikkei 225 futures fell 1%

• Hang Seng futures fell 1.1%

• S&P/ASX 200 futures fell 0.6%

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%

• The euro was little changed at $1.1003

• The Japanese yen was little changed at 136.51 per dollar

• The offshore yuan was little changed at 6.9345 per dollar

Cryptocurrencies

• Bitcoin was little changed at $28,708.35

• Ether rose 0.2% to $1,874.76

Bonds

• The yield on 10-year Treasuries declined 14 basis points to 3.42% on Tuesday

• Australia’s 10-year yield advanced nine basis points to 3.44%

Commodities

• West Texas Intermediate crude was little changed

• Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

(Corrects day in second paragraph.)

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