Stock market today: Asian shares weaker ahead of Federal Reserve interest rate decision

TOKYO (AP) — Asian shares were mostly lower in cautious trading Tuesday ahead of the Federal Reserve’s upcoming decision on interest rates.

Japan's benchmark Nikkei 225 dropped 1.1% to 33,160.03. Australia's S&P/ASX 200 lost 0.5% to 7,196.70. South Korea's Kospi edged down 0.7% to 2,556.42. Hong Kong's Hang Seng slipped 0.2% to 17,893.99, while the Shanghai Composite fell 0.1% to 3,122.21.

The Fed is due to wrap up a two-day meeting on Wednesday. Japan's central bank will meet Thursday-Friday as observers speculate that it might gradually begin to adjust its longstanding negative interest rate policy.

“Market sentiment remained in its usual wait-and-see ahead of the Federal Open Market Committee meeting this week,” said Yeap Jun Rong, market analyst at IG.

Monday on Wall Street, the S&P 500 edged up 0.1% to 4,453.53 and the Dow Jones Industrial Average rose less than 0.1% to 34,624,30. The Nasdaq composite added less than 0.1% to 13,710.24.

Stocks have been see-sawing since early August on uncertainty about whether the Fed will finally end its hikes to interest rates. Higher rates have helped cool inflation from its peak last summer, but they also hurt prices for stocks and other investments while slowing the economy.

Traders almost universally expect the Fed to keep rates steady at its meeting this week. Attention will mainly focus on forecasts Fed officials will publish about where they expect interest rates, the economy and the job market to head in upcoming years.

Traders are betting on a roughly 40% chance the Fed will raise rates again in either November or December, according to data from CME Group.

But just as much attention will be on what Fed officials say about next year, when investors expect the Fed to begin cutting interest rates. Investors...