Asian stocks were mixed as investors awaited a cut in US interest rates this week while the yen was calm after a powerful earthquake rocked Japan's northeast region though the impact was limited.

In Hong Kong, the benchmark Hang Seng Index gained 15 points, or 0.06 percent, to open at 25,780.

On the mainland, the benchmark Shanghai Composite Index was down 0.19 percent to 3,916 while the Shenzhen Component Index was 0.26 percent lower at 13,295 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 0.21 percent at 3,183.

Investor sentiment remained cautious ahead of a slew of central bank meetings, including a looming decision by the Reserve Bank of Australia on the day, as markets look for a clearer picture of the outlook for global interest rates.

The Australian central bank and Bank of Canada are all expected to hold rates steady this week, while the US Federal Reserve is widely expected to lower borrowing costs on Wednesday.

The spotlight though is on what comes after the Fed's December rate cut, with bond investors positioning for a shallow US easing cycle. Many Wall Street banks predict fewer Fed interest rate cuts in 2026 on lingering inflation concerns and expectations of a more resilient US economy.

That has left stocks trading sideways. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.28 percent lower after a weak overnight session on Wall Street. Japan's Nikkei eased 0.08 percent, while South Korea's Kospi fell 0.58 percent.

"The low-hanging fruit from risk management cuts is likely over and chair Jerome Powell's presser is likely to convey a more cautious approach going forward regarding additional policy recalibration," said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities.

"The dot plot is likely to show one cut in 2026. In the instance the dot plot shows two cuts for next year this would be dovish."

While a rate cut is expected, some strategists think the Fed's policy committee could be sharply divided.

The meeting will also be held amid heightened market interest on who will succeed Powell as Fed chair when his term ends in May next year. White House economic adviser and the top contender for the Fed chair role, Kevin Hassett, has said the Fed should continue to lower interest rates.

Traders are pricing in 77 basis points of easing by the end of next year, according to LSEG data.

David Mericle, chief US economist at Goldman Sachs, expects the Fed will likely raise the bar for further rate cuts, noting there will be dissenters among the committee for further easing and Powell will be cautious. "But the [policy-setting Federal Open Market Committee] cannot box itself in too much, especially at a time when we are two employment reports out of date, because a January cut could turn out to be appropriate," he said.

Asian chip stocks wobbled after US President Donald Trump said the United States would allow Nvidia's H200 processors, its second-best artificial intelligence chips, to be exported to China and collect a 25 percent fee on such sales. China's CSI Semiconductor Industry Index was down about 1 percent in early trading. (Reuters/Xinhua)