Japan's Nikkei index closed lower on Wednesday as traders remained cautious ahead of the Federal Reserve's monetary policy decision.
The Nikkei recovered some of its early losses, but ended the session down 0.3 percent at 38,274.05 points.
The broader Topix index also fell 0.5 percent to 2,729.40 points.
The Federal Reserve's Open Market Committee is widely expected to leave interest rates unchanged on Wednesday at the end of its two-day meeting, amid continued inflation.
Markets have already reduced expectations for a U.S. rate cut this year, but investors remain cautious about how hawkish Fed Chairman Jerome Powell will be in his press conference.
The wide interest rate gap between Japan and the United States continues to weigh on the yen, raising questions about how a severely weak currency will affect the economy and consumption.
Investors are also still wary of the risk of authorities intervening in the currency, and doubts that Tokyo may have already intervened.
Of the 225 components of the Nikkei, 151 stocks declined against 72 advancers. Heavyweight SoftBank Group lost 1.6 percent, while Fast Retailing, owner of clothing brand Uniqlo, fell nearly 1 percent.
Shares of chip equipment maker LaserTec jumped 14.9 percent after the company posted earnings that beat estimates in after-hours trading on Tuesday.
West Japan Railway Co. shares rose 8.6 percent after it decided to buy back 4.1 percent of its shares.
JGC Holdings was the biggest loser, falling 11.4 percent amid disappointing earnings forecasts.
