Markets gain, commodities boost resource shares

HONG KONG, Sep 19 (Reuters) Asian stocks rose on Tuesday, as investors bought resource shares such as mining giant BHP Billiton and Korea Zinc following a rebound in commodity prices.

But gains were expected to be limited, with caution likely to prevail ahead of the Federal Reserve's policy-setting meeting on Wednesday and key U.S. data, including producer prices data, housing starts and building permits, due later on Tuesday.

While the U.S. central bank is widely expected to keep interest rates unchanged, investors are keen for clues to future rate policy.

U.S. crude was at .95 a barrel, well off a six-month low of .03 plumbed last Friday.

At 0025 GMT, Tokyo stocks had gained 1.10 percent, boosted by strength in property shares after a government survey showed average land prices in Japan's top three cities rose in the year to July 1 for the first time in 16 years.

Sumitomo Realty&Development advanced 2.35 percent and property firm Mitsui Fudosan added 1.3 percent.

The Japanese market was shut on Monday for a public holiday.

In South Korea, gains of 1.87 percent for Shinhan Financial Group and 0.30 percent for Samsung Electronics helped nudge the benchmark KOSPI index up 0.07 percent.

Korea Zinc, the world's biggest refiner of zinc, climbed 1.46 percent.

But analysts warned the market looked ripe for a pullback after reaching a fresh four-month high.

''Global markets have been very strong recently. We don't expect a reversal to this rising trend, but because we've already seen four consecutive sessions of gains, we're more likely to see a correction,'' said Kim Hak-kyun, an analyst at Korea Investment and Securities.

Australia's S&P/ASX 200 index put on 0.45 percent thanks to a further rebound in mining stocks, including heavyweights BHP Billiton and Rio Tinto, both up about 1 percent.

Most metals on the London Metal Exchange such as zinc rallied at the close on Monday on speculative buying.

U.S. stocks ended little changed on Monday with investors sidelined ahead of the Fed meeting. The blue-chip Dow edged 0.05 percent lower, while the tech-laden Nasdaq Composite Index added a mere 0.01 percent.

REUTERS PDS BST0742