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Japan's Nikkei share average inched up on Tuesday as the market found its footing following the previous day's fall, although the index was confined in a narrow range ahead of the US Federal Reserve's policy meeting.
The Nikkei was up 0.05 per cent at 19,987.25, drawing mild support as the yen pulled back from a five-week high versus the dollar. The index had dropped to a two-week low of 19,901.88 the previous day, hit by the yen's rise.
Much investor focus was on the Fed's two-day meeting due to start later on Tuesday, and its potential impact on financial markets.
“The equity market is on hold at the moment, waiting for the Federal Open Market Committee (FOMC) outcome. The key is which direction currencies take in response to the Fed,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management.
“There won't be a post-meeting press conference this time and a concern is the Fed coming through as too subdued. That could trigger a yen surge and in turn push down the Nikkei towards 19,500.”
Japanese Prime Minister Shinzo Abe's flagging support ratings also continued to cap equities, although this was a factor that will likely take months to play out, Akino added.
The broader Topix was flat at 1,621.06. Exporters were buoyed as the yen's appreciation stalled for the time-being.
Tokyo Electron rose 1.1 per cent and Panasonic Corp edged up 0.4 per cent. Mazda Motor Corp climbed 1.5 per cent, Nissan Motor Co added 0.5 per cent and Toyota Motor Corp gained 1.5 per cent.
Drugmaker Mitsubishi Tanabe Pharma Corp was up 2.3 per cent following news that it has agreed to purchase Israel's Neuroderm for $1.1 billion as part of a strategy to expand its US business.
Fellow drugmaker Shionogi & Co Ltd climbed 2.4 per cent after the company announced that it would submit a new influenza drug application to regulators later in the financial year following positive results in trials.
Showa Denko KK dropped 4.7 per cent after the chemical maker on Monday revised down its net and recurring profit forecasts for the year through December 2017.
Mobile carrier NTT Docomo lost 1.3 per cent after the Nikkei business daily reported that its April-June group operating profit likely sank nearly 10 per cent on year because of competition from budget carriers.
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