Mixed start to Asian markets

Markets have already factored in a 25 basis point cut to U.S. interest rates

TOKYO, Japan -- Tokyo stocks inched higher at the opening of trading on Tuesday, bouncing off the previous session's near-17-year low on the back of firmer U.S. stocks.

But traders said the gains would likely prove fleeting amid signs the domestic economy was deteriorating and corporate profits dwindling.

"The Nasdaq may keep us flat today, but the market is now faced with a weak U.S. economy, deflationary concerns, and slow progress on pledged structural reforms. For the time being, we're going nowhere," said Masaaki Higashida, deputy general manager at Nomura Securities' investment information and services department.

The benchmark Nikkei average was up 0.88 percent or 98.79points at 11,356.73 by 0011 GMT, while the broader TOPIX index tacked on 0.66 percent or 7.66 points to 1,162.81.

The Nikkei had fallen for four straight sessions through Monday to its lowest close since December 11, 1984.

Most major technology shares, including Toshiba Corp, put on modest gains following the U.S. Nasdaq's 0.77 percent rise after it hit a four-month low on Friday.

Toshiba, the nation's number-one chip producer, added 1.43 percent to 569 yen, while industry peer Fujitsu Ltd ticked up 2.17 percent to 1,272.

Fujitsu was extending Monday's 2.81 percent jump after announcing restructuring plans that include slashing its global workforce by 16,400.

Matsushita Communication Industrial Co Ltd (MCI), Japan's largest mobile phone maker, rose 3.23 percent to 4,160 yen ahead of an expected announcement at 3 p.m. that it and number-two NEC Corp T plan to tie up in mobile phone video technology. NEC gained 0.31 percent to 1,610.

Mitsubishi Heavy Industries Ltd rose 2.06 percent to 495 yen after the Nihon Keizai Shimbun business daily reported on Tuesday that it and two other heavy machinery manufacturers will join Boeing Co's new supersonic passenger jet project.

Light trade ahead of Fed decision

Players predicted light trade ahead of the U.S. Federal Reserve's policy meeting later in the day when it is expected to chop interest rates for a seventh time this year to reinvigorate the U.S. economy.

A 25-basis-point cut is factored in, traders said.

In Australia, the All Ordinaries index rebounded from Monday's falls to trade 17.7 points higher at 3254.7 points after an hour's business.

Resources major BHP Billiton, which annouced a $2.2 billion profit yesterday, was 2c firmer at A$9.15, while media giant News Corporation was 33c stronger at A$16.94.

Elsewhere, Korea's Kospi index had shed 2.11 points to 564.98 in eaqrly business while in Taipei the Taiwan index was 3.79 points weaker at 4546.57.

Reuters contributed to this report.