Asian shares mixed as investors await central bank moves

Asian shares are mixed amid cautious trading ahead of a Federal Reserve Open Market Committee meeting

TOKYO -- Asian shares were mixed Tuesday amid cautious trading ahead of a policy meeting by the U.S. Federal Reserve.

Japan's benchmark Nikkei 225 lost 0.4% to finish at 29,520.90. Australia's S&P/ASX 200 slipped 0.6% to 7,324.30. South Korea's Kospi surged 1.1% to 3,012.63. Hong Kong's Hang Seng fell 0.1% to 25,124.94, while the Shanghai Composite shed 1.2% to 3,502.60.

With inflation in the U.S. at its highest point in three decades, the U.S. Federal Reserve is set this week to begin winding down the extraordinary stimulus it has given the economy since the pandemic recession struck early last year, a process that could prove a risky balancing act.

Chair Jerome Powell has signaled the Fed will announce after its policy meeting Wednesday that it will start paring its $120 billion in monthly bond purchases as soon as this month. Those purchases are intended to keep long-term loan rates low to encourage borrowing and spending.