Asian shares inched higher Wednesday, awaiting a decision on the size of an expected U.S. interest rate cut, and the euro fell to a new five-week low against the yen.

South Korean stocks were among the strongest performers, with a gain of 1.5 percent, helped by index heavyweight SK Telecom Co.

Shares of the mobile telephone company rose 2.2 percent after it announced a plan to buy back and cancel three percent of its shares.

Tokyo's Nikkei 225 index edged 0.15 percent higher to 8,932.26, led by rebounds in large, liquid stocks such as Nippon Steel Corp.

A firmer U.S. market Tuesday helped.

But trade in Tokyo and elsewhere was slow as investors cautiously awaited a key rate decision by the U.S. Federal Reserve due after Asian markets close.

The Fed is expected to cut rates by either 25 or 50 basis points to help speed recovery in the world's biggest economy, Asia's main export market.

The expected decision has pushed the euro lower in recent days, with the market trimming long euro positions because investors reckon the rate cut will help the U.S. economy recover faster than the euro zone.

The euro was worth $1.510 at 6:30 a.m. GMT, up from a five-week low of $1.475 it touched Tuesday.

Against the yen it reached a new five-week low of 135.24 yen , down from 135.66 yen in late U.S. trade.

The yen had been helped by sporadic buying by Japanese exporters. The dollar was trading at 117.60 yen down from 117.90 late in New York.

The Australian share market was a touch softer, but almost all others in Asia were fractionally higher.

Taiwan gained 0.5 percent and Singapore 0.2 percent, although Hong Kong was virtually unchanged at 6:30 a.m. GMT.

Gold rose about $1.50 an ounce in Asia, trading at $347.20 and unwinding some of Tuesday's losses.

Japanese government bonds held their ground after the Bank of Japan announced a widely expected decision to keep monetary policy on hold.

Oil was flat, with the front month futures contract on the NYMEX exchange trading at $28.76.