Investors await the conclusion of the Fed meeting while Asia stocks trade mixed.

• Markets in Australia and India are closed for holidays on Wednesday.
• The Fed's meeting on Wednesday is anticipated by investors, who expect the conclusion to indicate a rate hike in March and further policy tightening.
• The global growth forecast for this year was lowered by the International Monetary Fund due to the increase in Covid-19 cases, supply chain disruptions, and higher inflation, which are hindering the economic recovery.
• Oil and gold prices jumped overnight on concerns over Ukraine-Russia tensions.

On Wednesday, Asia's stock markets were mixed, mirroring the volatility of U.S. equities the previous night. The Fed meeting statement, which will be released later in the U.S., added to the uncertainty. Meanwhile, oil and gold prices surged due to the escalating tensions between Russia and Ukraine.

The Shanghai Composite Index increased by 0.7% to 13,780.30, while the Shenzhen Component Index rose by 0.66% to 3,455.67. On the other hand, Hong Kong's Index remained unchanged in the final hour of trading.

Chinese tech stocks experienced a slight recovery after losses the previous day, with the SSE Tech 100 index rising 0.86% and the Hang Seng Tech index increasing 1.43%. However, the Hang Seng Tech index later pared some of its earlier gains, ending the day 0.79% higher.

Evergrande is reportedly set to hold a call with investors and financial advisors on Wednesday night during Asia hours, according to Reuters sources. This would be Evergrande's first call since it defaulted on some offshore bond payments last month, Reuters stated.

shares last rose 1.72%.

Japan's Nikkei index dropped 0.44% to end at 27,011.33, while the Topix index fell 0.25% to 1,891.85.

In South Korea, the stock market declined by 0.41% to close at 2,709.24, while Singapore's Straits Times index rose by 0.91%.

Markets in Australia and India are closed for holidays on Wednesday.

The International Monetary Fund has revised its global growth forecast for 2022, predicting a weaker GDP of 4.4% compared to the previously estimated 5.9% due to rising Covid-19 cases, supply chain disruptions, and higher inflation.

Investors look ahead to Fed meeting conclusion

The Fed's meeting on Wednesday will be closely watched by markets, with expectations of a rate hike in March and further policy tightening to combat high inflation.

Following a volatile session on Monday, stocks stateside tumbled ahead of the Fed meeting statement.

On Tuesday, the Dow Jones Industrial Average dropped 67.77 points or 0.2%, ending the day at 34,297.73. The index fluctuated between a 819-point loss at its lows and a 226-point gain at its highs. Meanwhile, the S&P 500 decreased by 1.2% to 4,356.45, while the technology-focused Nasdaq Composite fell 2.3% to 13,539.30.

Oil, gold prices jump on Russia-Ukraine tensions

Geopolitical tensions persisted in unsettling investors, prompting Western allies to position troops in anticipation of a possible military confrontation with Russia over Ukraine.

On Tuesday, oil prices increased by more than 2% due to worries about potential supply shortages resulting from the Ukraine-Russia conflict, as well as other contributing factors.

During Asia trading hours, U.S. crude decreased slightly to $85.53 per barrel, while Brent increased by 0.17% to $88.35 per barrel.

Overnight, gold prices surged to a more than two-month high due to geopolitical tensions, reaching their highest since November 19 at $1,852.65. In Asia hours on Wednesday morning, spot gold was trading at $1,846.

As investors seek refuge from potential policy tightening by the Fed and increasing geopolitical risks, gold is experiencing a rally, according to Edward Moya, senior market analyst at Oanda. The Russian-Ukraine conflict, the possibility of North Korea resuming nuclear tests, and the approaching decisive moment in Iran nuclear talks are among the factors contributing to this tense situation.

Currencies

The dollar index, which measures the greenback against a group of other currencies, increased to 96.046, up from earlier levels of approximately 95.9.

If the U.S. monetary tightening is aggressive, the dollar may strengthen, according to Kathy Lien of 60 Second Investor.

If Powell announces rate hikes in March and recommends aggressive inflation control with more than 4 rounds of tightening, the U.S. dollar will likely strengthen against major currencies. On the other hand, if Powell fails to confirm this, it could trigger a relief rally in equities and currencies, reducing demand for U.S. dollars.

The dollar strengthened against the euro, trading at 113.93 per euro, while the euro was at $0.7156, strengthening from around $0.714 earlier.

— CNBC’s Karen Gilchrist contributed to this report.