The tepid start to the day followed tech-led losses on Wall Street, while a limited Ukraine ceasefire agreed between US President Donald Trump and Russia's Vladimir Putin was met with a shrug.

The yen edged up against the dollar after the Bank of Japan kept interest rates on hold, warning about the outlook amid "high uncertainties" including over trade.

Investors are also gearing up for central bank decisions in the United States, the United Kingdom and Indonesia, where stocks tanked Tuesday on concerns about Indonesia's economy.

Fresh pledges by China to boost domestic consumption and welcome data out of the United States that eased recession worries helped Asian markets to a strong start to the week.

But Trump's scattergun trade policies, which have seen him impose measures on some key partners but delay others, have stoked uncertainty.

While no new levies have been announced in recent days, the next key date is April 2, when sweeping reciprocal measures are due to kick in, with Treasury Secretary Scott Bessent telling Fox Business "each country will receive a number that we believe represents their tariffs".

"We are going to go to them and say, look, here's where we think the tariff levels are, non-tariff barriers, currency manipulation, unfair funding, labour suppression," he added on "Mornings With Maria."

Many economists have warned that the tariffs -- which are being met with retaliation by some countries -- will tip the US economy, and possibly others, into recession.

With that in mind, the Federal Reserve's policy meeting, which ends later Wednesday, is being closely followed by traders hoping for an idea about officials' plans to deal with any negative impact.

- Gold hits new record -

The Bank of Japan, as expected, stood pat on interest rates, having hiked them last month amid concerns over the outlook, particularly with regard to trade.

"There remain high uncertainties surrounding Japan's economic activity and prices, including the evolving situation regarding trade," the bank warned in a statement after its announcement.

Stefan Angrick of Moody's Analytics wrote in a note ahead of the decision that "a wave of tariff measures and threats from Washington have kept financial markets on edge".

The yen rose against the dollar, having weakened in earlier trade, while Japan's Nikkei 225 stock index rose.

Elsewhere in Asia, Sydney, Seoul and Singapore also edged up. But Hong Kong and Shanghai dipped along with Wellington, Taipei and Manila.

Jakarta fell more than one percent, extending a painful retreat Tuesday, when it shed more than seven percent at one point on economic fears.

Gold struck a new record high just above $3,038 on fears of a fresh upsurge in hostilities in the Middle East after Israel launched its most intense strikes on Gaza since a ceasefire with Hamas took effect.

Those concerns helped dampen sentiment on Wall Street, where all three main indexes resumed a sell-off after a two-day recovery from recent losses.

Trump's talks with Putin failed to yield a full ceasefire, with the Russian leader instead only agreeing to halt attacks against Ukrainian energy targets.

While the White House hailed the talks as "good and productive", Ukrainian President Volodymyr Zelensky pledged continued fighting in Russia's Kursk region.

Top US envoy Steve Witkoff told Fox News that fresh talks had been planned to take place on Sunday in Jeddah.

- Key figures around 0230 GMT -

Tokyo - Nikkei 225: UP 0.7 percent at 38,107.27 (break)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 24,650.22

Shanghai - Composite: DOWN 0.2 percent at 3,423.56

Euro/dollar: DOWN at $1.0935 from $1.0944 on Tuesday

Pound/dollar: DOWN at 1.2995 from 1.3003

Dollar/yen: UP at 149.52 yen from 149.36 yen

Euro/pound: DOWN at 84.14 pence from 84.16 pence

West Texas Intermediate: DOWN 0.4 percent at $66.62 per barrel

Brent North Sea Crude: DOWN 0.4 percent at $70.29 per barrel

New York - Dow: DOWN 0.6 percent at 41,581.31 (close)

London - FTSE 100: UP 0.3 percent at 8,705.23 (close)

dan/tym

INDEX CORP.

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