Asian dealers cautious ahead of Fed meeting

Hong Kong - Asian traders moved cautiously on Tuesday ahead of a much-anticipated Federal Reserve policy meeting, which they hope will provide clarity on the US central bank's interest rate plans for the rest the year.

While a string of upbeat economic readings in recent months have made a hike at Wednesday's gathering an odds-on bet, there is uncertainty about its outlook, dampening buying sentiment of late.

"Markets fully expect a rate rise, so market reaction is likely to be muted unless the Fed disappoints, which would lead to lower bond yields and a lower dollar, although that is not our expectation," Mike Bell, global market strategist at JP Morgan Asset Management, wrote in a note.

"All attention is likely to be focused on the press conference to see whether a more hawkish tone is struck, if so yields and the dollar could move higher still."

In early Asian trade the dollar was essentially flat against the yen, euro and pound.

Tokyo ended the morning session 0.1% lower, with struggling industrial giant Toshiba taking yet another hammering after it again delayed the release of its financial results by a month, having already put it back once.

The firm sank more than eight percent. The delay stems from an investigation into the US subsidiary, Westinghouse Electric, the Nikkei business daily said.

In other markets Hong Kong was down 0.1%, Shanghai gained 0.2% and Sydney was flat. Seoul ticked 0.5% higher and Singapore, Taipei and Manila also rose.

Regional investors were given a tepid lead from New York as the east coast of the US steels for a massive storm that could hit economic output.

And in Europe Britain is on the cusp of officially triggering Article 50 to leave the EU while there is growing unease about Wednesday's elections in the Netherlands that far-right anti-EU nationalists are predicted to score well in.