RPT-GLOBAL MARKETS-Stocks hold tight before Fed, Matsushita up

(Repeats to wider audience with no change to text)

By Tom Miles

HONG KONG, April 30 (Reuters) - Asian investors braced for a U.S. interest rate decision on Wednesday but kept an eye out for stocks with robust earnings prospects, such as Japanese flat-panel TV maker Matsushita, which leapt 11.5 percent.

The U.S. Federal Reserve, which is widely expected announce another rate cut later, could also signal that its cutting cycle is done for now.

That could trouble firms counting on an even cheaper cost of debt but it could also draw a line under the financial crisis, since the Fed's rush to slash rates has reflected widespread panic about the fragile health of the U.S. economy.

Although trading was muted ahead of the Fed, Matsushita Electric Industrial Co (6752.T: Quote, Profile, Research, Stock Buzz), the world's No.1 plasma TV maker, which posted a 15 percent rise in quarterly operating profit and forecast a larger-than-expected gain this year, triggering analyst upgrades.

"If you look around the world, it's not all doom and gloom, and the Beijing Olympic Games, which are the biggest business chance for us, are coming up," said Matsushita President Fumio Ohtsubo.

"I am fully aware of tough business conditions. But we don't need to be overwhelmed by them."

The stock's rise helped cushion the Nikkei average index's .N225 0.1 percent fall. Shares across the rest of Asia .MIAPJ0000PUS were flat at 0337 GMT.