China stocks inched higher on Tuesday in thin trade as market participants exercised caution ahead of the U.S. Federal Reserve's two-day policy meeting.

The blue-chip CSI300 index rose 0.4%, to 3,667.62 points, while the Shanghai Composite Index closed up 0.1%, at 2,890.16 points.

The Fed, facing fresh demands by U.S. President Donald Trump to cut interest rates, begins the meeting later on Tuesday. The central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.

There is continued improvement in risk appetite as easing in global monetary policies has been confirmed, CITIC Securities analysts said in a report.

China's domestic policies have turned relatively loose as Beijing moves to manage expectations and shore up economic growth, the brokerage added.

Source : Reuters