HONG KONG: The euro edged up in Asia Wednesday despite Greece hitting out at its creditors as its debt reform talks remain in stalemate, while investors await the end of a key Federal Reserve policy meeting later in the day.
With the release of some disappointing US data and the Greek crisis dragging on, analysts said dealers are hoping the Fed puts back a rate hike, which is expected by the end of the year.
Hong Kong added 0.59 percent, Shanghai edged up 0.23 percent and Sydney gained 1.00 percent while Seoul was flat but Tokyo eased 0.33 percent by lunch.
Fears Athens will default and crash out of the eurozone increased Tuesday when Greek Prime Minister Alexis Tsipras accused creditors of trying to "humiliate" his country and said the IMF bore "criminal responsibility" for austerity measures that plunged it into recession.
His outburst comes after talks between the two sides broke down Sunday and have yet to restart, and led to calls for him to tone down his rhetoric to find an agreement.
With the stalemate showing no signs of ending, US Treasury Secretary Jacob Lew told Tsipras in a phone call Tuesday he should make "a serious move to reach a pragmatic compromise with its creditors".
Failing to reach a deal "would create immediate hardship for Greece and broad uncertainties for Europe and the global economy", Lew warned, according to a statement from the Treasury.
However, the euro ticked up to $1.1255 from $1.1251 and 138.91 yen from 138.79 yen in Tokyo Wednesday.
The dollar was at 123.43 yen against 123.36 yen in US trade.
Analysts said the crisis would likely be in focus when the Fed concludes its meeting later Wednesday. Dealers are hoping for some clearer guidance on its plans for raising interest rates, with fears a hike too soon could hit the global economy.
"I expect there to be a sense of relief if Yellen says that they won't hurry into rate hikes, or says something supportive towards a recovery in the US economy," Hiroichi Nishi, a manager of investment research and services at SMBC Nikko Securities in Tokyo, told Bloomberg News.
"The market continues to be wary of Greece's possible default."
And Shane Oliver, the head of investment strategy at AMP Capital Investors Ltd. in Sydney, added: "Yellen is unlikely to come across as overly hawkish given the Greek situation."
A strong run of recent data has increased expectations for a rate rise as soon as September but this has been slightly tempered by below-forecast reports this week on housing starts and factory output.
On Wall Street, the Dow rose 0.64 percent, the S&P 500 added 0.57 percent and the Nasdaq advanced 0.51 percent.
Oil prices were higher ahead of a US stockpiles report Wednesday. US benchmark West Texas Intermediate for July delivery rose 11 cents to $60.08 while Brent crude for August gained five cents to $63.75.
Gold fetched $1,181.11 compared with $1,183.25 late Tuesday.
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