Investing.com - Asian shares edged mostly higher Wednesday after a volatile session overnight on Russia's brewing economic crisis and as investors watch out for the U.S. Federal Reserve's statement later in the day.
The Nikkei 225 was flat, while Australia's S&P/ASX 200 gained 0.6% and Korea's Kospi edged up 0.3%.
Investors appeared to return to the region after falling oil prices, jitters in Russia and worries about tighter U.S. monetary policy battered emerging markets earlier in the week. Yesterday, selling pushed India's rupee down to its weakest level in more than a year, while stocks in Singapore and Malaysia lost more than 2%.
Still, the Federal Reserve is expected to a release a statement Wednesday that could give clearer indication of when it will raise short-term interest rates in the U.S. next year, a move that might sap money flows from riskier markets in Asia and further boost the U.S. dollar.
Overnight, concerns that Russia's economic woes may slow global growth coupled with uncertainty as to how upbeat the Federal Reserve will view the U.S. economy in its Wednesday policy statement sent Wall Street stocks falling on Tuesday.
At the close of U.S. trading, the Dow 30 fell 0.65%, the S&P 500 index fell 0.85%, while the Nasdaq Composite index fell 1.24%.
Russia's central bank hiked interest rates earlier though the ruble continued to plunge on fears falling oil prices and sanctions slapped on the country for its alleged meddling in Ukraine will damage the economy.
U.S. stocks slid on concerns Russia's problems could slow global growth, possibly prompting the Federal Reserve to account for such headwinds in its statement on interest rates and monetary policy due out on Wednesday.
Soft U.S. housing data added to Tuesday's declines.
The Census Bureau reported earlier that the number of housing starts fell to 1.028 million units in November from 1.045 million in the preceding month, whose figure was revised up from 1.009 million.
Analysts had expected the number of housing starts to rise to 1.030 million last month.
Building permits took a similar turn for the worse.
The Census Bureau reported that the number of building permits issued in November fell to 1.035 million from 1.080 million in the preceding month.
Analysts were expecting the number of building permits issued to fall to 1.060 million last month.
While a broader analysis of the U.S. housing sector still points to recovery, many investors jumped to the sidelines to await the Federal Reserve's statement on Wednesday.
Elsewhere, the U.S. is to release data on consumer inflation and the current account.