-- Most Asian stocks fell on Tuesday, with Japanese markets losing ground before a potentially historical policy shift from the Bank of Japan, while anticipation of a Federal Reserve meeting kept sentiment subdued. 

Regional markets took little cheer from a positive overnight close on Wall Street, with U.S. stock index futures falling in Asian trade as a mild recovery in technology ran dry. 

Anticipation of potentially hawkish signals from the Fed remained a key point of concern for markets. The bank is expected to on Wednesday. 

Japan’s Nikkei 225 falls ahead of BOJ decision

Japan’s index fell 0.5%, while the broader lost 0.2% as both indexes relinquished some gains from the prior session.

Markets were focused squarely on the conclusion of a later in the day, where the central bank is potentially set to raise interest rates for the first time in 17 years, while also ending its negative rates and yield curve control, marking an end to nearly a decade of ultra-loose monetary policy. 

Bets on a BOJ pivot rose sharply in recent weeks amid sticky Japanese inflation, while major Japanese labor unions also won bumper wage hikes for the year. 

The Nikkei had slid from record highs over the past week on fears of a BOJ pivot, which marks an end to the stimulus measures enjoyed by Japanese markets for nearly a year. 

But analysts still expect the BOJ to only gradually tighten policy.

Other regional central bank meetings were also on tap. Australia’s was flat before a , where the RBA is widely expected to keep rates steady and maintain a hawkish tilt.

China’s and indexes fell slightly as investors digested mixed economic data from the prior session, while losses in technology stocks dragged Hong Kong’s index down 0.7%. 

A decision from the People’s Bank of China on its benchmark is also due this week, with the PBOC expected to leave the rate unchanged on Wednesday. 

for India’s index pointed to a mildly negative open, as the index floundered under record highs amid anticipation of more market cues. 

Tech, AI stocks fall despite Nvidia’s new chip reveal

Major Asian technology stocks, particularly those with exposure to artificial intelligence, retreated on Tuesday, tracking an aftermarket drop in AI darling NVIDIA Corporation (NASDAQ:), after the firm unveiled its latest line of AI chips. Nvidia lost nearly 2% in aftermarket trade. 

(KS:) and (KS:) slid nearly 4% and 1.4%, respectively, dragging South Korea’s down more than 1%.

In Japan, (TYO:), which is an Nvidia supplier, fell 2.7%, while (TYO:)n, the country’s most valuable chipmaker, shed 0.2%. 

Nvidia unveiled its latest line of AI chips, called Blackwell, at a developer conference on Monday. But the AI darling offered no cues on pricing of the chips.