Asia investors watch for rate cut

Asian stocks saw modest gains on Thursday as investors watched out for interest rate cuts, with Japan looking poised to slash its rate near zero to tackle a sharp economic downturn, dealers said.
Tokyo rose 0.64 percent, Hong Kong 0.2 percent and Sydney 0.3 percent.
Markets were unmoved by a record 2.2 million barrels per day cut in output by the OPEC oil cartel on Wednesday that was announced as it tries to battle falling prices.
The Bank of Japan on Thursday opened a two-day meeting which could cut interest rates down from the already low 0.3 percent.
The US Federal Reserve on Tuesday slashed its benchmark rate to virtually zero, sending the dollar plunging against the yen.
"If the BoJ does not lower rates it will be a catastrophe. While a rate cut will not bring down the yen that much, the impact will be greater if it fails to do anything," said Societe Generale's forex head Yuji Saito.
Japanese officials have hinted at a possible intervention in currency markets. "We think that we need an appropriate and timely response," Chief Cabinet Secretary Takeo Kawamura told a news conference.
The dollar was trading Thursday in the 87 yen range, the Japanese currency's strongest level in 13 years.
"The downward pressure on the dollar/yen won't ease unless a forex intervention is undertaken," Takero Inaizumi, head of the equities department of Mizuho Investors Securities, told Dow Jones Newswires.
In Shanghai, market speculation that Beijing may cut interest rates and reduce banks' reserve requirement ratio in the near term triggered a late rally in financial firms, dealers said.