The action was light, with MSCI’s broadest index of Asia-Pacific shares outside Japan barely changed and Australia up a slim 0.3 percent. Shanghai stocks were flat while Seoul lost 0.6 percent.
Japan’s Nikkei pared its early losses to be off 0.6 percent, battling to maintain the momentum of Tuesday’s 3 percent rally which followed a decision by the Bank of Japan to expand a scheme to encourage more bank lending.
The move was taken as a sign that the central bank was open to further easing steps, which many expect will be needed once an increase in Japan’s sales tax is enacted in April.
Dealers will also be carefully watching China’s central bank after it drained funds from the money market on Tuesday.
The People’s Bank of China (PBOC) is trying to engineer a gradual upward shift in the cost of money to encourage companies to deleverage and discourage high-risk shadow banking activity.
Investors are anxious in case the tightening goes too far and hurts economic growth, concerns that have periodically put pressure on currencies and shares across the Asian region.
Wall Street failed to offer much of a lead with the Dow off 0.15 percent on Tuesday, while the S&P 500 added 0.11 percent. The Nasdaq fared better with a gain of 0.68 percent, bringing its winning streak to eight straight sessions, the longest since July.
The tech-heavy index was boosted by a jump in the shares of Tesla Motors Inc on speculation Apple might be interested in bidding for the electric car maker.
Disappointing data on New York manufacturing and U.S. housing added to the case for the Federal Reserve to be patient in its tapering plans and pushed Treasury yields lower, so undermining the dollar’s interest rate advantage.
Yields on the benchmark 10-year U.S. Treasury note eased 4 basis points to 2.71 percent.
Later on Wednesday, the Fed will release minutes of its January policy meeting when it decided to trim its asset buying by another $10 billion.
Fed Chair Janet Yellen has since indicated that the central bank was still inclined to keep tapering, though markets assume the run of soft data will encourage patience in its efforts.