Meanwhile, the higher dollar strained commodity markets, where the underlying raw materials are priced in the United States currency. The Philippine and Taiwanese central banks also make rates decisions later in the day. The U.S. central bank said on Wednesday it would start to reduce its $4.2 trillion worth of bond holdings that ballooned through three rounds of quantitative easing.
Investors are far from persuaded the Fed will move on rates again this year, with a December change put at less than a 50 per cent probability in the futures market.
An analyst noted that the prices are moving away because the market perceived the meeting's agenda and tone to be somewhat hawkish in terms of the forecasts and outlook for the interest hike.
The BOJ is also seen maintaining a loose pledge to keep buying bonds so its holdings increase at an annual pace of 80 trillion yen ($710.86 billion), in contrast to the Fed's plan to steadily pull back from crisis-era measures.
According to investing.com's fed rate monitor more than 70% of traders expect the Federal Reserve to hike rates in December.
"Despite expectations for strong dollar demand for settlement purposes, the USA currency drew only moderate purchases", a currency broker said. There was little follow-through from U.S. President Donald Trump's bellicose rhetoric over North Korea on Tuesday. He mocked North Korean leader Jim Jong Un and warned that the USA could "destroy" the rogue state should it make good on any of its threats. Gains in automakers were offset by losses in tech stocks and retailers: Hyundai Motor rose 1.07 percent, Samsung Electronics shed 0.15 percent and Lotte Shopping fell 3.03 percent in early trade.
The S&P bank index was up 0.5 percent, adding to Wednesday's gains.
USA data showing domestic home construction fell for a second straight month in August weighed on the dollar index earlier.
Megyn Kelly: 'Absurd' How Many Reporters Are Biased Against Trump
In response, DeGeneres said Trump is too "dangerous for the country and for me personally as a gay woman " to promote. She concluded that to have someone on her show , she has to admire the person at least a little.
Dow Jones closed down by 0.23 percent, S&P 500 ended down 0.29 percent, Nasdaq finished the day down by 0.51 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent after wobbling between positive and negative territory in early trading.
"As that balance sheet drops, that's potentially going to leave us with higher long-term rates". The dollar index fell 0.35 percent.
The 225-issue Nikkei average advanced 389.88 points, or 1.96 percent, to end at 20,299.38, topping the 20,000 threshold for the first time since August 7 on a closing basis and hitting its highest closing level since August 18, 2015.
Global shares were mixed Tuesday, as investors awaited comments from the U.S. Federal Reserve, but Japan's benchmark rose on optimism over a weak yen and a record finish on Wall Street.
In Asian trade on Tuesday, the USA ten-year Treasury yield slipped 1 basis point on the day to 2.218%.
Mainland China stock prices rose on gains in consumer stocks and "new energy" vehicle manufacturers and improving business confidence and expectations China will maintain stability in financial markets ahead of an important Communist party meeting.