Asian shares uncertain as investors await key central bank meetings

Asian shares were mixed on Tuesday, while currencies traded in tight ranges ahead of several important central bank meetings. Investors are anticipating these meetings as these could set the tone for risk appetite heading into the coming year.

MSCI’s gauge of Asia-Pacific shares outside Japan regained earlier losses, trading 0.8% higher at 0128 GMT.

Japan’s Nikkei dipped 0.2%, while Australia’s S&P/ASX 200 edged down 0.6%.

In China, shares opened slightly lower with blue chips shedding 0.09%, while Hong Kong’s benchmark gained jumped 1.8%.

Meanwhile, South Korea’s KOSPI index opened 1.50% higher.

Investors turned their focus on the Reserve Bank of Australia’s (RBA) meeting on Tuesday, with the U.S. Federal Reserve and Bank of England set to hold their respective policy decisions later in the week.

Leaving behind the RBA’s key policy measure targeting ultra-low short-term rates would indicate a change in the bank’s dovish stance and could be a precursor to the Fed’s meeting that markets anticipate will signal the start of bond-buying tapering.