Asia-Pacific markets declined on December 12 with Hong Kong's Hang Seng index falling 2.11 percent and leading losses in the region, ahead of the US Federal Reserve meet.
The Hang Seng Tech index shed 3.71 percent. Alibaba Group dropped 2.8 percent, Meituan lost 5.9 percent and Tencent fell 2.4 percent.
Meanwhile, South Korean benchmark Kospi, Japan’s Nikkei 225 and ASX 200 were down between 0.3 - 0.6 percent.
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Analysts are of the view that Asian markets will experience more volatility in the early days of reopening. At a summit, Goldman Sachs' President John Waldron said China’s road to reopening could be "bumpy". This coupled with recession in Europe and the US could lead to a tougher economic climate, he added.
Investors also remained cautious ahead of Federal Reserve's monetary policy meeting. Fed is widely expected to raise rates by 50 basis points on Wednesday at its last meeting of 2022, a step down from the 75 basis points hike in last few meetings.
"Despite some promising developments, we have a long way to go in restoring price stability," Fed chair Jerome Powell had said in a speech delivered at the Brookings Institution.
Ahead of the Fed decision, all eyes are also on the United State's consumer price index report for November. Economists expect core annual inflation to ease to 6.1 percent in November, compared to rise of 6.3 percent in the previous month.
In India, equity benchmarks were flat amid volatility. At 10 am, Sensex was down 11.74 points at 62,169, while Nifty lost 4.10 points at 18,492.
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