Asian markets open flat; Japans Nikkei on track for 17th straight gain

Key highlights:

• Asian shares trod water in early trade on Wednesday
• US Treasury yields and the dollar got a lift following a report Republican senators were leaning towards John Taylor to be the next Federal Reserve chief
• Japan's Nikkei stock index was up 0.5% in early trading, on track for an unprecedented 17th straight session of gains

Asian shares trod water in early trade on Wednesday, while US Treasury yields and the dollar got a lift following a report Republican senators were leaning towards John Taylor to be the next Federal Reserve chief.

MSCI's broadest index of Asia-Pacific shares outside Japan was flat in early trade.

Japan's Nikkei stock index was up 0.5% in early trading, on track for an unprecedented 17th straight session of gains after the victory of Prime Minister Shinzo Abe's coalition in Sunday`s election raised investors` hopes of continued yen-weakening stimulus.

US President Donald Trump used a luncheon with Senate Republicans on Tuesday to get their views on who he should tap to be the next leader of the Federal Reserve, according to senators who attended.

A source familiar with the matter said Trump polled the Republicans on whether they would prefer Stanford University economist John Taylor or current Fed Governor Jerome Powell for the job, and more senators preferred Taylor.

Taylor is seen as someone who may put the central bank on a faster path of interest rate increases.

That gave stocks a lift, and helped send US benchmark 10-year Treasury note yields to their highest since March. The 10-year yield stood at 2.417 % us10yt=rr>

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The dollar was briefly dented on Tuesday by a CNBC report, citing an aide of Senate leader Mitch McConnell, that three GOP Senators may not back the Republican tax bill.

"The base line is that a U.S. tax cut will eventually materialise, and that`s supporting the dollar and pushing up the U.S. Treasury yields," Yamamoto said.

The Australian dollar skidded 0.5 % to $0.7741 Asian markets hover near decade highs; investors eye China Congress