HONG KONG – As world markets gear up for the Federal Reserve’s most anticipated meeting in years, shares in Asia were mixed on Tuesday.

The Nikkei index in Tokyo fell 1% to 36,203.22, while the Hang Seng in Hong Kong advanced 1.3% to 17,654.79. Markets in mainland China and South Korea were closed, while Australia’s S&P/ASX 200 gained 0.2% to 8,140.90.

Traders are eagerly awaiting the Fed’s decision on interest rates, expected on Wednesday. It is anticipated that the Fed will cut its key rate for the first time in more than four years after keeping rates high to control inflation.

“The warning is that markets steeped in rich policy expectations are ripe for volatility,” commented Mizuho Bank. “Accordingly, it may be best to be braced for policy curveballs that could potentially force market re-pricing.”

U.S. retail sales and industrial output data are expected later in the day. On Monday, the Dow rose 228 points, or 0.6%, to set a new all-time high at 41,622.08.

The S&P 500 index and Nasdaq composite saw mixed results, with some influential tech stocks like Apple and Nvidia experiencing losses. However, most stocks rose, with Oracle and Alcoa posting gains.

Traders are speculating on a potential larger-than-usual rate cut by the Fed, with concerns about the impact on inflation. In other currency and oil market news, the dollar and euro saw slight changes, while crude oil prices rose.

Inflation has eased, allowing the Fed to focus on supporting the job market and economy. Critics warn of a potential recession risk with delayed action.

Overall, Asia markets are bracing for potential impacts from the Fed’s decision as they continue to monitor global economic trends.