ASIA MARKETS: Asia Stocks Edge Higher, With Bank Of Japan On Tap

By Sarah Turner, MarketWatch

SYDNEY (MarketWatch) -- Asia stocks edged higher on Tuesday, with Tokyo-traded shares firm ahead of the conclusion of a two-day meeting at the Bank of Japan.

Japan's Nikkei Stock Average rose 0.3%, South Korea's Kospi traded up 0.1%, and Australia's S&P/ASX 200 index advanced 0.5%.

The Bank of Japan is slated to wrap up its two-day policy meeting Tuesday, and markets are expecting the central bank to raise its inflation target, announce more asset purchases and outline closer cooperation with the government.

"We expect it to adopt a 2% inflation target in a joint statement with the government and announce an increase in the size of asset-purchase program by 10 trillion yen ($128 billion), with the purchase program deadline extended to mid-2014 from end-2013," said strategists at Barclays Capital.

"As a less likely scenario, we think it is possible that the Bank of Japan announces an open-ended bond buying program," the strategists said.

Japanese stocks have already rallied substantially on expectations of aggressive easing, which has worked to depress the yen. The dollar (USDJPY) bought Yen89.53 Tuesday morning in Asia, off from recent highs but still around 13% above where it traded three months ago.

Corporate news generated some buying in the Japanese market on Tuesday, as Sony Corp. (SNE) rallied 3.2% after reports that the firm will offer a new version of its Xperia tablet computer in Japan in a few months time.

Separately, the Nikkei reported that the firm has begun supplying a smaller image sensor for smartphone cameras, starting with a model for release this spring.

Casio Computer Co. (CSIOY) climbed 2.2% after an upgrade to neutral from underperform at Mizuho Securities, according to Bloomberg news.

With benchmark U.S. crude-oil futures holding above the $95-a-barrel level, energy names also gained ground in Tokyo, with Japan Petroleum Exploration Co. (1662.TO) up 1.4% and Inpex Corp. (IPXHY) gaining 1.3%.

Australian energy firms also advanced, with sector giant Woodside Petroleum Ltd. (WOPEF) adding 0.7% and Beach Energy Ltd. (BCHEY) climbing 1.3%.

MacMahon Holdings Ltd. (MAH.AU) was among the top gainers in Sydney, rising 9.8% after getting its largest-ever mining deal, a $1.9 billion contract to expand a Fortescue Metals Group Ltd. [ (FSUMY) mine.

Shares of Fortescue rose 2%.

In South Korea, Samsung Electronics Co. (SSNLF) gained 0.5% to pare recent losses.

U .S. markets were closed for a holiday on Monday but are slated to reopen Tuesday, with earnings set to dominate investors' focus.

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