Oil prices rose after Iraq's oil minister said Organization of the Petroleum Exporting Countries producers and others were considering extending a supply cut, and after data showed USA crude stocks were lower than expected. One can buy on dips with a stop loss below Rs 29,380 for a pullback.
Ahead of the event, the dollar held onto gains after creeping higher overnight, with the greenback trading near an eight-week high.
MSCI's broadest dollar-denominated index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.4 percent, shrugging off slight gains on Wall Street.South Korea's Kospi .KS11 was down 0.2 percent, while Australia .AXJO shed 0.9 percent.
USA stocks opened higher on Monday as investors were awaiting the closely-watched Federal Reserve meeting scheduled later this week.
The New Zealand dollar gained 0.6 per cent to US$0.7360 after reaching its highest level in 6-1/2 weeks as one poll showed the country's National Party pulled ahead of the rival Labour Party ahead of a general election this weekend.
Investors will be listening for any hint of a shift in the central bank's interest rate plans or views on the US economy.
Regarding oil prices, WTI crude jumped by nearly 1% to $49.97 per barrel while London-based Brent surged by 0.51% to $55.42 after Iraq's energy minister, Jabar al-Luaibi, said on Tuesday at an energy conference in the United Arab Emirates that OPEC members.as well as other oil producers, are considering the option to extend or widen supply cuts a day after the API weekly report indicated a smaller than expected rise in U.S. inventories. An index of European banks .SX7P was a leading faller, down 0.6 percent.
Geopolitical tensions resurfaced after US President Donald Trump warned that he would totally destroy North Korea if it attacks the US or its allies and labeled North Korean leader Kim Jong-un as a "Rocket Man" on a suicide mission. Santos is down 0.9 percent, Woodside Petroleum is losing 1 percent and Oil Search is declining more than 1 percent.
The two-year swap rate rose 2 basis point to 2.24 percent while 10-year swaps rose 2 basis points to 3.25 percent. While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement for clues about the outlook for policy.
The is expected to reassure markets on Thursday that it will lag well behind its USA counterpart in scaling back its massive stimulus, as an improving economy has yet to boost inflation anywhere near its elusive 2% target.
This is largely due to expectations that the central bank will choose its September meeting to announce the start of its plans to begin reducing the $4.4 trillion balance sheet it has accrued over the decade since the financial crisis.
The Nikkei has gained almost 30 percent since Abe attained political power in late 2012.
The dollar bouncing higher off multiyear lows hit earlier this month has hurt gold prices in the past week.
In commodities, the November crude contract gave back nine cents at US$50.35 per barrel while the December gold contract fell $14.40 to US$1,310.80 an ounce.