CANBERA (dpa-AFX) - Asian stocks ended mostly higher on Tuesday, although overall gains remained capped amid caution ahead of the U.S. Federal Reserve and the Bank of Japan meetings due this week.
The U.S. central bank is unlikely to cut rates at its two-day meeting, but the Fed's statement on Wednesday may offer fresh clues as to the timing around a possible interest-rate cut later this year.
Markets have nearly priced in hopes for a rate cut eventually since the Fed chairman made remarks on June 4 suggesting a lower rate.
Chinese shares ended little changed in thin trade. The benchmark Shanghai Composite index ended marginally higher at 2,890.16 while Hong Kong's Hang Seng index climbed 1 percent to 27,498.77.
Japanese shares hit a 1-1/2-week low in subdued trade as caution set in ahead of Fed and BoJ meetings. The Nikkei average dropped 151.29 points or 0.72 percent to 20,972.71 while the broader Topix index closed 0.72 percent lower at 1,528.67.
A falling interest rate scenario pulled down insurers, with both Japan Post Insurance and T&D Holdings declining over 1 percent. Tsuruha Holdings, the parent company of Tsuruha Co., jumped 4 percent after releasing a positive trading update.
Market heavyweight SoftBank tumbled 3.3 percent after its Vision Fund led a $205 million investment in San Francisco-based health startup Collective Health.
Apartment management firm Tateru Inc plunged 18.6 percent on a Nikkei report that the land ministry plans to slap a business suspension order on the company over data manipulation.
Australian shares advanced after the minutes from the June RBA Board meeting suggested that the central bank will likely cut rates further to drive increased hiring and boost households' confidence.
Investors shrugged off a government report showing that Australia's house price index declined in the first quarter of 2019.
The benchmark S&P/ASX 200 index climbed 39.10 points or 0.60 percent to 6,570 while the broader All Ordinaries index ended up 38.50 points or 0.58 percent at 6,647.90.
Coles Group rallied 3.5 percent after the supermarket chain said it is targeting A$1 billion in cumulative savings over a four-year period. Woolworths Group rose 1 percent and Wesfarmers advanced 1.8 percent.
Tech stocks such as Xero and Appen rose 1-2 percent. Gold miner Evolution jumped 2.5 percent and Newcrest gained 1.1 percent as gold prices edged higher on dollar weakness.
Healthcare heavyweight CSL rallied 1.8 percent, Cochlear added 1.1 percent and Resmed advanced 1.3 percent.
Seoul stocks finished modestly higher after declines in last four sessions. The benchmark Kospi inched up 7.98 points or 0.38 percent to 2,098.71 on institutional buying. Tech and auto stocks led the surge, with Samsung Electronics and Kia Motors ending up more than 1 percent.
New Zealand shares eked out modest gains, with the benchmark S&P/NZX 50 index ending up 21.07 points or 0.21 percent at 10,191.33.
Investors shrugged off survey data from Westpac showing that New Zealand's consumer sentiment weakened slightly in the second quarter as households remained downbeat about the economic backdrop.
U.S. stocks rose overnight as weak data spurred speculation about interest-rate cuts. The Dow and the S&P 500 inched up around 0.1 percent while the tech-heavy Nasdaq Composite gained 0.6 percent.
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