Asian stocks closed mostly higher Tuesday after Monday's selloff as battered financials regained some luster ahead of a Federal Reserve meeting that is expected to yield steep U.S. rate cuts. Japan finished 1.5 percent higher, but Australia closed flat.
Chinese stocks were the only exception, closing nearly 4 percent down because of pressure from possible monetary tightening.
Monday's markets slumped after the Fed's unexpected cut in a key lending rate and the bargain sale of U.S. investment bank BearStearns to JPMorgan Chase sparked fears of a deepening global credit crisis. Concern about financial market contagion and a U.S. economy that is already believed by some economists to be in recession is likely to weigh heavily on Fed policymakers later Tuesday when they gather to decide on U.S. interest rates.
Japan's Nikkei 225 Average closed 1.5 percent higher, snapping a three-day losing streak despite lingering concerns about a stronger yen, as investors picked
up beaten-down shares such as Canon after the previous day's market selloff.