GLOBAL MARKETS-Oil, dollar slip as markets wait for Fed

* Federal Reserve to meet later, weigh more easing

* Nikkei at 7-week high but strong yen worries persist

* Aussie jumps on hawkish RBA minutes

* Gold steady near record high

By Alex Richardson

SINGAPORE, Sept 21 (Reuters) - The dollar hovered near a five-week low on Tuesday and oil eased as traders positioned for a Federal Reserve policy meeting later that may discuss whether the fragile U.S. economy needs a fresh infusion of cash.

Few market players expect the Fed to make further easing moves just yet -- and the dollar could gain if that view plays out -- but it is seen as much more likely that it will signal its readiness to act if necessary. [ID:nN14175842]

Asian shares edged up after a positive lead from Wall Street, where optimistic corporate news from the likes of IBM had pushed the S&P 500 <.SPX> to a four-month closing high. [.N]

Japan's Nikkei <.N225> rose 0.4 percent to a seven-week high, although worries remained that the yen -- whose recent strength is a big problem for the export-led economy -- could spike again despite last week's intervention to curb it by the authorities.

"If you ask whether the mood has turned positive, it is hard to say yes, even if a worsening in market sentiment has come to a halt," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.

Japanese government bonds edged up following gains by U.S. Treasuries, with any hint that the Federal Reserve may be leaning towards further quantitative easing seen as positive for the U.S. debt market. [US/T] [JP/]

For a preview of Tuesday's Fed meeting, see: [ID:nN14175842]

For PDF on the yuan: http://r.reuters.com/cad44p

For gold in Asian currencies: http://link.reuters.com/dan54p

For dollar/yen correlations: http://link.reuters.com/wyn43p

For PDF on the yen's rise:

http://r.reuters.com/zuz33p

DOLLAR SELLING

The dollar index <.DXY> against a basket of other major currencies eased 0.2 percent to 81.21, near a five-week low of 80.865 hit last week.

The dollar stood little changed at 85.60 yen , not far from its post-intervention high of 85.94 hit on Friday.

Tokyo has not been spotted in fresh currency interventions since its massive yen-selling spree on Wednesday, though Japan's prime minister warned markets last week that authorities are ready to step in to curb yen strength again. [ID:nTOE68F035]

More dollar selling by Japanese exporters is expected towards 86 yen level before the end of September, when many Japanese exporters close their books.

"Share prices are rising, so there's no strong reason to buy the yen at the moment. But on the other hand, there will be yen buying on any dip," said a trader at a major Japanese bank.

The Australian dollar spiked to about $0.9477 after minutes from the Reserve Bank of Australia confirmed its hawkish stance, saying the central bank stood ready to use interest rates to help manage an expected strong pick-up in the economy. [ID:nCBR000084]

U.S. crude for October delivery slipped 47 cents to $74.39 a barrel ahead of the contract's expiry later in the day, resuming last weeks trend on lingering worries about the health of the U.S. economy, a major factor in demand for energy. [O/R]

Gold was steady around $1,278 an ounce, off the record $1,283.70 hit in the previous session. [GOL/}

MSCI's index of Asian shares outside Japan <.MIAPJ0000PUS> rose 0.2 percent, with the energy sub-index the biggest gainer. (To read Reuters Global Investing Blog click on http://blogs.reuters.com/globalinvesting; for the MacroScope Blog click on http://blogs.reuters.com/macroscope; for Hedge Fund Blog Hub click on http://blogs.reuters.com/hedgehub)