Most markets track Wall St losses as jitters set in ahead of Fed

They will also be poring over its post-meeting statement and boss Jerome Powell's news conference, looking for clues about the debate taking place among decision-makers.

Bets on a third successive cut -- and more in 2026 -- have surged on the back of data pointing to a weakening jobs market, which has offset concerns about stubbornly high inflation.

That optimism was boosted last month by reports that President Donald Trump's top economic aide Kevin Hassett -- a proponent of more cuts -- was the frontrunner to take the Fed's helm when Powell's term ends.

However, the excitement has calmed in recent days and Bloomberg reported that markets are pricing two more reductions next year, down from the three expected last week.

"This decision is unlikely to be unanimous, with dissent expected from hawks and doves," wrote Fiona Cincotta, senior market analyst at City Index.

"The market sees two rate cuts by the summer. Should the Fed's dot plot differ from this, there could be volatility," Cincotta added.

Pictet Wealth Management senior US economist Xiao Cui said: "We expect solid growth, above-target inflation, and a slowing labour market to increase internal divisions at the (policy board) and make 2026 a particularly challenging year for policymakers.

"Downside risks to the labour market should lead the Committee to cut once more in December, before shifting to a quarterly pace of cuts in March and June."

However, she said her team "see risks that Fed cuts are delayed into the second half of 2026".

After a pullback in all three main indexes on Wall Street, Asian and European markets also struggled.

Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei, Mumbai and Manila were all down, though there were gains in Tokyo, Singapore, Bangkok and Jakarta.

London retreated at the open, while Paris and Frankfurt edged up.

Chipmakers were mixed in Asia after Trump said he had reached an agreement with Chinese counterpart Xi Jinping to allow US chip giant Nvidia to export advanced artificial intelligence chips to China.

The announcement marks a significant shift in US export policy for advanced AI chips, which Trump's predecessor Joe Biden had heavily restricted over national security concerns.

Biden's administration required chip companies to create modified, less powerful versions specifically for the Chinese market.

- Key figures at around 0815 GMT -

Tokyo - Nikkei 225: UP 0.1 percent at 50,655.10 (close) 

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,434.23 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,909.52 (close)

London - FTSE 100: DOWN 0.1 percent at 9,637.55 

Dollar/yen: UP at 156.16 yen from 155.86 yen on Monday

Euro/dollar: UP at $1.1642 from $1.1640

Pound/dollar: UP at $1.3329 from $1.3328 

Euro/pound: DOWN at 87.32 pence from 87.34 pence

West Texas Intermediate: DOWN 0.2 percent at $58.79 per barrel

Brent North Sea Crude: DOWN 0.1 percent at $62.43 per barrel

New York - Dow: DOWN 0.5 percent at 47,739.32 (close)

dan/tc