Hong Kong - Asian stocks markets drifted on Tuesday and the dollar was virtually unmoved with investors biding their time as crucial central bank gatherings in the United States and Japan kick off.
The Fed heads into one of its most keenly awaited policy meetings after weeks of speculation that has fanned volatility across global trading floors, with investors split on whether it will lift interest rates.
At the same time opinion is divided on what the Bank of Japan's intentions are, with expectations for fresh stimulus tempered by a lack of concrete promises from Tokyo, despite weak growth and almost non-existent inflation.
The uncertainty leading up to the meeting is keeping traders at bay, Chris Weston, chief market analyst in Melbourne at IG, said.
"No one is prepared to take on too much risk ahead of the Bank of Japan and the Fed Open Market Committee meetings," he told Bloomberg News.
Tokyo's Nikkei index swung to and fro in early trade before ending the morning 0.1% higher.
However, Hong Kong slipped 0.5% and Shanghai lost 0.2% following healthy gains on Monday. Sydney dropped 0.2% and Seoul was flat and Singapore shed 0.2%.
Currency markets were also subdued ahead of the bank announcements, which are due on Wednesday.
The dollar edged up to ¥101.97from ¥101.88 in New York while the euro was at $1.1178 from $1.1175.
Sterling bought $1.3042 compared with $1.3028.
"It's difficult to buy into the market when you don't know what will happen," said Hiroyasu Iida, the head of investment research centre at Aizawa securities.
Oil prices turned lower again, digging into Monday's gains as investors grow tetchy about the likelihood of a deal next week between OPEC and Russia aimed at addressing a global supply glut and overproduction.
West Texas Intermediate for October eased 17 cents to $43.13 and Brent slipped 11 cents to reach $45.84.
"A big part of the rally was the hope that a deal could be getting closer with agreement at the Algiers meeting potentially leading to another meeting," said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader.
"But without any solid progress or agreement from all the oil producing countries, volatility and uncertain outlook continues."
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