Asian shares edged higher Tuesday but were capped by concerns over global growth prospects, especially in China, and expected weak U.S. corporate earnings.

The International Monetary Fund cut its global growth forecast on Tuesday to a 3.3 percent expansion for 2012, down from its July estimate of 3.5 percent, making it the slowest year of growth since 2009. It warned U.S. and European policymakers that failure to fix their economic ills would prolong the slump.

The IMF also said on Tuesday China's economic growth is expected to weaken to 7.8 percent this year, warning of risks to emerging Asia if the euro zone crisis worsens and the United States does not avoid its "fiscal cliff."

The IMF's World Economic Outlook preceded its twice-yearly meeting scheduled in Tokyo later this week, and followed a similarly grim report from the World Bank, which on Monday cut forecasts for the East Asia and Pacific region. It said the slowdown in China could worsen and last longer than expected.

Global shares and oil fell on Monday on the report.

U.S. equities fell on Monday ahead of the corporate earnings reporting season, which starts Tuesday, as analysts forecast third-quarter earnings to fall for the first time in three years, Reuters reported.

The MSCI index of Asia-Pacific shares outside Japan was up 0.6 percent, Australian shares added 0.5 percent, to a 14-month high, and South Korean shares were up 0.1 percent.

But Tokyo's Nikkei stock average fell 0.3 percent, resuming trading after a holiday on Monday. 

U.S. crude oil futures were up 1.1 percent to $90.28 a barrel and Brent was up 0.8 percent to $112.73. 

The euro traded at $1.2975, off its two-week peak of $1.3072 reached on Friday. The risk-sensitive and commodity-related Australian dollar inched up 0.3 percent to $1.0211, after hitting a three-month low of $1.0149 on Monday.