@Jmobile you had incorrect Nginx configuration, the following block was commented out to make it work:

If you still need to specify expires header for static files then I suggest the following Nginx config block instead:

  location ~* ^(/cache_public/|/plugins_public/|/modules/|/studio/|/template/).+\.(jpg|jpeg|gif|css|png|js|ico|svg|eot|ttf|woff)$ {
    expires 12M;
    access_log /dev/null;
	error_log /dev/null;
  }