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ZHANG:Asia markets mostly rebound, but China falls again on inflation worries. Japan nominates new candidate for BOJ chief.ZHANG: Asia stocks largely rebounded on Tuesday but caution ahead of a U.S. Federal Reserve meeting on interest rates limited gains.Japan's Nikkei ended 1.5 percent higher (11,964), bouncing back from a two-and-a-half year low.Banks gained back some of the sharp losses posted on Monday. And exporters such as Canon also gained some lost ground as the dollar held above a 13-year low versus the yen. The Japanese government nominated a second candidate to lead the Bank of Japan on Tuesday, hoping to end a stalemate that threatens to leave the position vacant. Koji Tanami, a 68-year-old former vice finance minister and head of a government-backed lending agency, was tapped just one day before current Governor Toshihiko Fukui retires.Opposition leaders, who control the upper house of parliament, can still veto Tanami as they did the first BOJ candidate, Toshiro Muto. If no new governor is put in place by tomorrow, the government could install Deputy Governor Massaki Shirakawa, who won approval last week, as temporary governor.In China, stocks slid with investors worried that authorities will continue to raise interest rates to calm rising inflation. The Shanghai composite index fell nearly 4 percent.Elsewhere in the region, gains were modest as markets began to rebound. Investors will take further cues from the U.S. Federal Reserve, which is expected to cut interest rates at a meeting later in the day.