Most Asian markets remained in a narrow range on September 18 as investors kept their eyes on the upcoming Federal Reserve meeting, with the central bank widely expected to cut interest rates. Regional trading volumes were relatively light due to holidays in Hong Kong and South Korea, while Chinese markets were muted as they reopened after a long holiday.

Asian markets were underwhelmed by flat trading on Wall Street, with investors reluctant to make big bets ahead of the Federal Meeting. U.S. stock index futures rose slightly in Asian trading.

Trading was quiet and sentiment was subdued after Chinese markets reopened. China's CSI 300 and Shanghai Composite Index were little changed. A series of negative economic data recently released have heightened market concerns about China's growth prospects, with major indexes falling to seven-month lows and lagging far behind regional peers.

Despite this, investors are still looking forward to additional stimulus measures from Beijing in response to recent signs of economic weakness. Japanese markets performed strongly, with the Nikkei 225 index rising 0.7% and the Topix index rising 0.2%. Local stocks partially recovered the previous day's losses, driven by a stronger yen, as investors are eyeing the Bank of Japan meeting later this week.

The Bank of Japan is expected to keep interest rates unchanged, but may send hawkish signals and reiterate plans for further rate hikes in the coming months. In addition, Japan's consumer inflation data will also be released on Friday. Nippon Steel (TYO:5401) rose 2% after reporting that its security review of its proposal to acquire U.S. Steel (NYSE:X) was extended.

Asian stock markets overall reacted flatly amid the wait for the Fed's announcement, limiting the occurrence of large-scale transactions. Australia's ASX 200 index remained flat, while futures for India's Nifty 50 index showed a modest bullish open, approaching new highs. India's wholesale inflation in August was slightly lower than expected, according to data released on the 17th.

The market generally expects the Fed to cut interest rates, and traders are divided on whether to cut by 25 basis points or 50 basis points, but bets on a 50 basis point cut have increased recently. The Fed may announce the beginning of an easing cycle, which is good news for risk-averse stock markets.