Markets widely expect the Fed to raise its benchmark overnight interest rate by 75 basis points (bps) to a range of 3.75% to 4.00%, the fourth such increase in a row
Japan's Nikkei edged up 0.16%, the S&P/ASX 200 index rose 0.2%, while South Korean stocks added 0.1%
Asian shares rallied on Wednesday as fears of a Russian invasion of the Ukraine this week dissipated, after Moscow indicated it was returning some troops to base, thereby relieving the investors.
Geopolitics also remained a worry as the White House warned Russia could invade Ukraine any day and French President Emmanuel Macron prepared for a trip to Moscow
The Federal Reserve has indicated it is likely to raise U.S. interest rates in March, as has been widely expected
Adding to the caution was concerns about a possible Russian attack on Ukraine with the U.S. State Department pulling out family members of its embassy staff in Kyiv.
Asian shares flatlined on a slow as the spread of Omicron clouded what is the last trading day of the year for many exchanges, while oil was close to finishing 2021 with gains of more than 50%
Asian stock markets and the US dollar struggled for traction on Friday after a rush of central bank meetings underlined the growing threat posed by a spike in global inflation
China Evergrande Group on Tuesday missed its third round of bond coupon payments in three weeks
Oil prices extended their bull run, with gains across the energy complex stoking inflation concerns.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.31 per cent in morning trading
Chinese blue chips shed 4.4% to their lowest since December
Asian shares held firm on Thursday after Federal Reserve Chair Jerome Powell said the US economy was 'still a ways off' from levels the central bank wanted to see before tapering its monetary support
In the United States, inflation data could provide a scare ahead of testimony by Federal Reserve Chair Jerome Powell on Wednesday and Thursday, where markets will be hyper-sensitive
Chinese shares were marginally firmer in a choppy session.
Asian shares rose on Wednesday while the U.S. dollar stood near its lowest levels this year after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance
Asian shares climbed in early trade on Tuesday, tracking a Wall Street rally overnight, while the dollar held near a fourth-month low as investors tempered fears about inflation-driven rate hikes
Asian shares got off to a cautious start on Monday as investors awaited key US inflation readings for guidance on monetary policy, while Bitcoin tried to steady after being hammered
Taiwan's government on Monday had to reassure investors it would stabilise stock and foreign exchange markets if needed amid a spike in Covid-19 cases
Global equity markets have scaled record highs in recent days on bets Covid-19 vaccines will start to reduce the inflection rates worldwide and on a stronger US economic recovery under President Biden