* Asian stocks slip as investors shed risk ahead of Fed, BOJ
* Higher chance of hawkish surprise from Fed - analyst
* Saudi Arabia unveils Aramco IPO plans
* Oil prices recover on weaker dollar, new cash
By Hideyuki Sano and Nichola Saminather
TOKYO/SINGAPORE, April 26 (Reuters) - Asian stocks retreated on Tuesday as investors braced for central bank policy meetings in the United States and Japan this week.
European markets were poised to fare better, with financial spreadbetters expecting Britain's FTSE 100 to start the day up 0.2 percent, Germany's DAX to gain 0.2 percent, and France's CAC 40 to open flat.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, while Japan's Nikkei closed down 0.5 percent.
Hong Kong's Hang Seng index slid 0.8 percent. In China, both the CSI 300 and the Shanghai Composite were down 0.4 percent.
Investors are cautious about buying riskier assets ahead of the U.S. Federal Reserve's two-day policy meeting starting later on Tuesday.
A surprise drop in new U.S. home sales data for March supported a view of anaemic U.S. economic growth, which may keep the Fed from raising interest rates.
In fact, markets see no chance of a rate increase at this week's meeting and are pricing in just about a one in five chance of a move at the next meeting on June 14-15.
Yet, Fed officials have repeatedly said a hike in June is on the cards.
"Even dovish policy makers such as (Boston Fed President Eric) Rosengren are saying market expectations are too low. And it is not hard to imagine many at the Fed feel current market rates are too low," said Tomoaki Shishido, fixed income strategist at Nomura Securities.
"So the Fed may try to urge markets to price in higher rates. On balance, we are more likely to have a hawkish surprise than a dovish surprise," he added.
Ahead of the Fed's meeting, the 10-year U.S. Treasuries yield stood at 1.8986 percent, easing from a four-week high of 1.914 percent seen on Monday.
U.S. stocks fell on Monday as weaker oil prices weighed on energy shares, with the S&P 500 dipping 0.18 percent to 2,088, slipping further from a 4-1/2-month closing high of 2,102 hit last Wednesday.
Oil prices recovered on Tuesday, pushed up by a weaker dollar and a flood of new cash into the market, but analysts warned of further weakness as producers continue to battle for customers.
"The biggest bear risk to the oil market right now is that Iran's ramp-up accelerates and then Saudi Arabia does the same," analysts at Citibank said.
U.S. crude rose 0.3 percent to $42.77 per barrel but remained down 2.2 percent this week.