GLOBAL MARKETS-Asia stocks higher ahead of Fed, pound pressured by fresh Brexit pain

* MSCI Asia-Pacific index up 0.15%, Nikkei climbs 0.7%
* Pound hits 28-mth low on heightened no-deal Brexit woes
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Shinichi Saoshiro
TOKYO, July 30 (Reuters) - Asian stocks edged up on Tuesday
as equity investors prepared for an expected U.S. interest rate
cut this week while heightened concerns in currency markets
about a no-deal Brexit sent the pound to a 28-month low.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.15%.
South Korea's KOSPI .KS11 advanced 0.2% and Japan's Nikkei
.N225 added 0.7%. Australian stocks .AXJO climbed as much as
0.7% to touch a record high, supported by buoyant mining shares
and adding to the previous day's tech-driven gains.
The U.S. Federal Reserve begins a two-day policy meeting
later on Tuesday, at which it is widely expected to lower
interest rates by 25 basis points. If implemented, it would be
the central bank's first rate cut in a decade.
Prospective monetary easing by the Fed has been a key factor
behind the recent bull run by global equities, particularly U.S.
stocks, which have notched up record highs over the past month.
"Up until now, many market participants had been on the
sidelines while the markets factored in the likelihood of the
Fed's rate cut," said Kota Hirayama, senior emerging markets
economist at SMBC Nikko Securities, regarding gains by Asian
stocks.
"But with the Fed decision looming close some participants
appear to be shaking off the caution and buying."
Also drawing some attention were U.S.-China trade
negotiations due to begin in Shanghai on Tuesday, although
expectations for progress during the two-day meeting are low
with the markets hoping the two sides can at least detail
commitments for "goodwill" gestures.
In currencies, the pound extended an overnight slump and
fell to $1.2210 GBP=D3 , its lowest level since March 2017.
Sterling has suffered as investors scrambled to price in the
possibility that a last-minute agreement to avert a no-deal
Brexit may not be realised under British Prime Minister Boris
Johnson, who has said the Brexit divorce was dead. The British government said on Monday it assumed there would
be a no-deal Brexit because a "stubborn" EU was refusing to
renegotiate their departure.
The dollar index .DXY against at basket of six major
currencies was a shade higher at 98.084 and not too far from
98.165, a two-month top scaled on Monday on the back of
better-than-expected U.S. GDP data.
The greenback was 0.1% higher at 108.900 yen JPY= after
brushing a three-week high of 108.950.
Immediate focus for the yen was on the Bank of Japan's
two-day policy meeting due to end later on Tuesday.
The BOJ is widely expected to sand pat on policy, although
some expect it to tweak its forward guidance -a pledge central
banks make on future monetary policy moves- with the central
bank under increasing pressure to keep up with its dovish peers.
The euro was unchanged at $1.1142 EUR= after edging up
0.15% the previous day.
Crude oil prices added to the previous gains, when the
stronger-than-expected U.S. GDP strengthened the outlook for oil
consumption by the world's largest economy. O/R
U.S. crude futures CLc1 were up 0.6% at $57.22 per barrel
and Brent crude LCOc1 added 0.5% to $64.03.

(Editing by Sam Holmes)