Ahead of the Federal Reserve meeting due later today, investors dug down and most Asian markets stuck to a narrow range.

Due to holidays in Hong Kong and South Korea, regional trade volumes were low, and even when trading returned after a long hiatus, Chinese markets did not move much.

A flat overnight session on Wall Street served as a mediocre indication to Asian markets, as bets on the Fed were tempered. In Asian trade, U.S. stock index futures showed a little uptrend.

Following a series of disappointing economic data releases over the previous several days that indicated ongoing challenges for the nation's primary development engines, sentiment towards China remained negative.

China’s benchmark indices were trading at levels not seen in over seven months, having underperformed relative to their regional counterparts this year.

However, investors anticipate Beijing will announce further stimulus measures in response to recent indications of a faltering economy.

Asia's top performer was Japan's Nikkei 225 index, which increased by 0.7%, while the TOPIX gained 0.2%.

As investors awaited a Bank of Japan meeting later this week, local equities recovered some of the losses they had sustained in the previous session due to a higher yen.

While no adjustment in interest rates is anticipated, the BOJ is expected to sound hawkish and restate its intention to hike rates much further in the months ahead.

On Friday, Japanese consumer inflation data is also anticipated.

Nippon Steel was one of the biggest movers, rising 2% after Bloomberg revealed that the company has obtained an extension for the security examination of its acquisition offer for United States Steel.

While futures for India's Nifty 50 index indicated a somewhat positive start and the index was approaching a new high, Australia's ASX 200 remained flat. According to figures released on Tuesday, wholesale inflation in India in August was somewhat lower than anticipated.

While futures for India's Nifty 50 index indicated a somewhat positive start and the index was approaching a new high, Australia's ASX 200 remained flat. According to figures released on Tuesday, wholesale inflation in India in August was somewhat lower than anticipated.

Traders are unsure on whether to expect a 25 or 50 basis point reduction, though the Fed is almost definitely expected to cut However, recent sessions have shown an increase in betting on a 50 bps cut.

Additionally, the beginning of an easing cycle by the Fed is anticipated, which is encouraging for risk-driven stock markets.

(Sources: investing.com, reuters.com)