Asian shares slip ahead of Fed's view on US economic outlook

TOKYO (AP) — Asian shares fell in muted trading Wednesday as world markets cautiously awaited the U.S. central bank's latest assessment on the economy.

Japan's benchmark Nikkei 225 inched down less than 0.1% to finish at 29,914.33. South Korea's Kospi slipped 0.6% to 3,050.17. Australia's S&P/ASX 200 dipped 0.5% to 6,795.20. Hong Kong's Hang Seng edged down nearly 0.1% to 29,014.67, while the Shanghai Composite was little changed, down less than 0.1% at 3,444.70.

Investors are awaiting the Federal Reserve’s economic and interest rate projections, expected later in the day. Economists expect Fed Chair Jerome Powell will try to convince jittery financial markets that the central bank can continue providing support without igniting inflation.

Those worries have recently pushed bond yields higher, sapping buying demand for shares.

The Fed meeting “carries the potential to either allay or heighten some of the market’s recent concern with regard to the soaring bond yields,” said Jingyi Pan, senior market strategist at IG in Singapore.

Jeffrey Halley, senior market analyst Asia Pacific at OANDA said U.S. Secretary of State Antony Blinken's comments about China, while visiting Japan and South Korea, also dampened regional sentiments.

“The comments suggest that relations between the two superpowers remain as troubled as ever and does not bode well for the meeting tomorrow and Friday between senior officials of both countries. That state of affairs is adding to the glum mood on the China Mainland,” Halley said.

Blinken, after he and Defense Secretary Lloyd Austin met Tuesday with their Japanese counterparts, denounced China, saying, “We will push back if necessary, when China uses coercion or aggression to get its way.”

Wall Street capped a choppy day of...