By Lisa Twaronite TOKYO (Reuters) - Asian stocks scaled fresh seven-year peaks on Tuesday as Apple's upbeat earnings offset underlying caution ahead of the Federal Reserve's policy meeting scheduled to start later in the session. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent in early trading to touch its highest level since January 2008. Japan's Nikkei stock index advanced 0.6 percent. On Monday, Wall Street ended lower after the benchmark S&P 500 index hit a record intraday high before reversing course, tempered by caution ahead the Fed meeting.

(Reuters) - Apple Inc beat Wall Street's revenue and profit forecasts on Monday as it sold more iPhones in China than the United States for the first time, but the company gave no sales figures for its new Apple Watch. Apple's iPhone sales in China soared, increasing its revenue in the country 71 percent to $16.8 billion, although that was helped by gift-buying for Chinese New Year. Chief Executive Tim Cook said that China's expanding middle class is fueling iPhone sales there, which is the bulk of the company's sales.

Time Warner Cable Inc is open to merger discussions with Charter Communications Inc following a failed $45 billion bid by Comcast Corp , according to people familiar with the matter. Friendly negotiations between the two companies would be in sharp contrast to their acrimonious exchanges in 2013 and early 2014 that ended with Time Warner Cable rejecting unsolicited approaches by Charter and instead finding a white knight in Comcast. While Charter has yet to make a formal offer, Time Warner Cable believes its smaller peer may be willing to make a bid that is more attractive compared with its takeover attempt two years ago, the people said. Time Warner Cable also views Charter's stock as a more valuable currency than it did last year given its stock performance since then, the people said.

Mylan NV rejected Teva Pharmaceutical Industries Ltd's $40 billion takeover offer on Monday, saying in a scathing letter that it grossly undervalued the company and that Mylan has no interest in payment in what it termed "high-risk" Teva stock. Teva, the world's biggest maker of generic drugs, quickly responded to Mylan's refusal with word that it was "fully committed" and would move forward with the $82 per share cash and stock offer. Teva said it had begun the regulatory approval process and that it expects to complete a deal by the end of 2015. The company will meet with Mylan shareholders this week, according to sources familiar with the situation.