Asian stocks declined on Wednesday as investors parsed mixed inflation data from China and awaited the Federal Reserve's interest rate decision later in the day.

The Fed's final meeting of the year may deliver another rate cut, but the focus will be on the final Summary of Economic Projections (SEP) for 2025, which includes forecasts from Fed officials on economic growth, inflation, and interest rates for the coming years.

Fed Chair Jerome Powell's remarks to the press after the rate announcement will be watched closely for additional clues on the outlook for 2026.

The dollar was a tad lower in Asian trade and gold was little changed above $4,200 an ounce while oil edged up slightly after slipping nearly 1 percent in the previous session.

China's Shanghai Composite index slipped 0.23 percent to 3,900.50 after the release of mixed inflation data, with consumer price inflation accelerating in November while factory deflation worsened.

The consumer price index rose 0.7 percent on a yearly basis in November, matching expectations and faster than the 0.2 percent increase in October.

Producer prices declined 2.2 percent from a year ago in the month, remaining negative for 38 consecutive months.

Hong Kong's Hang Seng index finished 0.42 percent higher at 25,540.78, snapping a two-day decline after the Trump administration allowed Nvidia to sell advanced artificial intelligence chips to China.

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