Asian stocks closed mixed Tuesday, with shares in Japan falling 1.1%, as investors awaited a decision from the

Federal Reserve

on interest rates.

Japan's Nikkei 225 stock average fell 96.64 points to close at 8568.02. The Hang Seng index in Hong Kong rose 0.6%, while the S&P/ASX 200 index in Australia closed with a loss of 1%.

The U.S. central bank is widely expected to cut its key rate by at least a half point to 0.5%.

In Japan,

Sony

(SNE) - Get Report

fell 5.9% after Credit Suisse and Deutsche Securities downgraded their ratings on the stock.

Shares of steelmakers, such as

Nippon Steel

, were lower, following news reports that

Toyota

(TM) - Get Report

will ask for lower prices next fiscal year.

Stocks in Europe were trading mixed. The FTSE 100 index in London was trading down by 0.4%, while the DAX in Frankfurt rose 0.2%.

Shares of

Ericsson

(ERIC) - Get Report

were trading lower after Deutsche Bank advised clients to sell shares of the world's largest maker of wireless networks,

Bloomberg

reports.

Premarket futures in the U.S. were indicating stocks on Wall Street would open flat to lower when trading begins Tuesday.

Stocks in New York gave up ground Monday. The

Dow Jones Industrial Average

ended down 65.15 points, or 0.8%, at 8564.53, and the

S&P 500

fell 11.14 points, or 1.3%, to 868.59. The

Nasdaq

declined 32.38 points, or 2.1%, to 1508.34.

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