Hong Kong (CNN Business)Asian markets traded cautiously lower Monday as investors prepared for upcoming trade talks between the United States and China, as well as the Federal Reserve’s hotly anticipated decision on interest rates.

Japan’s Nikkei dropped 0.4%. South Korea’s Kospi (KOSPI) fell 1.6%, and was poised to extend a four-day losing streak. Hong Kong’s Hang Seng dropped 1%. The Shanghai Composite Index (SHCOMP) dipped 0.1%. Taiwan’s Taiex edged down 0.2%. Australia’s S&P/ASX 200, meanwhile, rose 0.2% in early trading.The trade talks that will kick off Tuesday in Shanghai mark the first time that top negotiators from the United States and China will meet in person since since their leaders declared a temporary truce at the G20 meeting last month. US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will speak with Chinese Vice Premier Liu He and other senior officials.It’s not likely that this week will yield any major developments. Larry Kudlow, Trump’s National Economic Council director, said Friday on CNBC that he didn’t expect a “grand deal” out of these negotiations. Read MoreAlso on the radar: The Federal Reserve is expected to cut interest rates later this week, which could kick of a rally in US markets. Here are some of the other big moves on Asian markets at 10:30 a.m. Hong Kong time.The months-long protests in Hong Kong are expected to hit the local economy, according to analysts and a government official. China’s top Hong Kong policy official will also speak publicly Monday for the first time about the escalating protests. Hong Kong is set to announce second-quarter GDP figures later this week.Japanese conglomerate Hitachi fell 2.3% in Tokyo. It reports earnings later in the day.The Japanese yen strengthened against the US dollar Monday, and was trading at ¥108.4700 per dollar in the morning.Oil prices dropped after posting weekly gains last week. WTI crude dipped 0.1% to $56.12 per barrel, and Brent crude fell 0.3% to $63.16 per barrel.

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