BANGKOK—World shares were mostly lower Tuesday after China reported its economy expanded at a 3 percent pace last year, less than half 2021′s rate.

European shares declined and Asian shares were mixed as investors watched to see if Japan’s central bank will alter its longstanding policy of keeping its key interest rate at minus 0.1 percent when it wraps up a policy meeting on Wednesday.

The Chinese economy is gradually reviving after antivirus controls and a real estate slump dragged on growth last year. Restrictions that kept millions of people at home have been lifted, but a surge in COVID-19 infections is keeping consumers cautious about travel, shopping, and dining out. Data reported Tuesday showed growth of the world’s second largest economy slid to 2.9 percent over a year earlier in December from the previous months 3.9 percent.

Germany’s DAX lost 0.1 percent to 15,121.32 and the CAC 40 in Paris was down 1 point at 7,042.75. Britain’s FTSE 100 edged 0.1 percent lower to 7,849.74. The future for the S&P 500 was 0.3 percent lower while that for the Dow Jones Industrial Average gave up 0.2 percent.

U.S. markets were closed Monday for a holiday. They ended last week with gains.

In Asian trading, Tokyo’s Nikkei 225 index gained 1.2 percent to 26,138.68 and the Sensex in Mumbai gained 1 percent, to 60,676.01.

Hong Kong’s Hang Seng index lost 0.8 percent to 21,577.64 and the Shanghai Composite index edged 0.1 percent lower to 3,224.24. In Seoul, the Kospi lost 0.9 percent to 2,379.39. Australia’s S&P/ASX 200 was barely changed, at 7,386.30.

Bangkok’s benchmark shed 0.1 percent.

The year has begun with optimism that cooling inflation could lead the Federal Reserve to ease off soon on sharp interest rate hikes that slow the economy and risk causing a recession. They also hurt investment prices.

Slowing segments of the U.S. economy and still-high inflation are dragging on profits for companies, one of the main levers that set stock prices. Friday marked the first big day for companies in the S&P 500 to show how they fared during the final three months of 2022, with a bevy of banks at the head of the line.

One big worry on Wall Street is that S&P 500 companies may report a drop in profits for the fourth quarter from a year earlier.

If the economy does fall into a recession, as many investors expect, sharper drops for profits may be set for 2023. That’s why the forecasts for upcoming earnings that CEOs give this reporting season may be even more important than their latest results.

In other trading Tuesday, U.S. benchmark crude oil lost 53 cents to $79.33 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.47 to $79.86 per barrel on Monday.

Brent crude, the pricing standard for international trading, picked up 20 cents to $84.66 per barrel in London.

The dollar was trading at 128.74 Japanese yen, up from 128.53 yen. The euro slipped to $1.0819 from $1.0822.

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