(Updates at 0515 GMT)

By Ankur Banerjee

SINGAPORE, April 30 (Reuters) - Asian stocks inched

higher on Tuesday as investors awaited a slew of economic data,

corporate earnings and the U.S. Federal Reserve's policy

meeting, while the yen was weaker a day after suspected

intervention lifted it from 34-year lows.

MSCI's broadest index of Asia-Pacific shares outside Japan

was 0.36% higher, set to clock in a nearly 1%

gain for the month, its third straight month of gains.

European bourses are set for a lacklustre open, with

Eurostoxx 50 futures and FTSE futures little

changed ahead of a euro zone inflation report.

This week's other data releases include U.S. labour market

reports, while the Fed is due to convene on Tuesday for its

two-day meeting at which it is expected to stand pat on interest

rates but strike a hawkish tone.

The spotlight remains on the yen after a volatile start to

the week as the Japanese currency surged to 154.40 per dollar on

Monday from a fresh 34-year low of 160.245, with traders citing

yen-buying intervention by authorities.

Markets had been anticipating that Japan might intervene to

prop up the yen after the currency fell more than 10% against

the dollar this year.

On Tuesday, the yen was last at 156.76 per dollar.

Japan's top currency diplomat Masato Kanda said on Tuesday

authorities were ready to deal with foreign exchange matters

around the clock while declining again to comment on whether the

finance ministry had intervened to a day earlier.

"We are ready 24 hours, so whether it's London, New York or

Wellington (hours), it doesn't make a difference," the vice

finance minister for international affairs told reporters.

Vasu Menon, managing director of investment strategy at

OCBC, said intervention alone cannot alter the wide gulf in

interest rates that is largely driving the yen's decline.

The yen has been under pressure as U.S. interest rates have

climbed and Japan's have stayed near zero, funnelling cash out

of yen and into higher-yielding assets.

"A lot now hinges on the outcome of the Fed policy meeting

this week," said Menon.

"Markets will be waiting with bated breath to see if the Fed

turns more hawkish, which will support the U.S. dollar and

undermine the appeal of the yen. If the Fed does not sound as

hawkish as markets fear, this could help the yen to strengthen."

Investors have continually had to dial back expectations for

the timing and magnitude of U.S. rate cuts this year after

hotter-than-expected inflation reports, with markets pricing in

a 57% chance of a rate cut in September, CME FedWatch Tool

showed.

Traders are now pricing in 35 basis points of cuts in 2024,

drastically lower than the 150 bps of easing priced at the start

of the year.

The shifting expectations on U.S. rates have lifted Treasury

yields and the dollar, dominating the currency market. Against a

basket of currencies, the dollar was higher at 105.85.

The index is up over 1% in April and over 4% for the year.

Meanwhile, earnings season heats up this week with high

profile results from Amazon.com ( AMZN ) and Apple ( AAPL ).

Overnight, U.S. stocks ended higher, led by sharp gains in

Tesla shares after the electric vehicle maker made

progress in securing regulatory approval to launch its advanced

driver-assistance program in China.

In Asia, the Nikkei rose 1% as Japan reopened after

a holiday on Monday but was still on course for a 5% fall in

April, its first monthly decline this year.

China stocks were mixed in with the blue-chip index

down 0.20%, while Hong Kong's Hang Seng index

was up 0.12%. The Hang Seng was on course for a 7.5% rise in

April, its strongest monthly performance since January 2023.

U.S. crude fell 0.22% to $82.45 per barrel and Brent

was at $88.29, down 0.12% on the day.

Spot gold eased 0.3% to $2,325.79 per ounce.