Asian stocks rose on Wednesday tracking overnight gains on Wall Street while the dollar was under pressure ahead of a Federal Reserve meeting that is expected to provide more stimulus to spur a flagging recovery.

European shares also opened higher as a swing towards the Republicans in U.S. elections lifted investor sentiment.

The MSCI index of Asia Pacific stocks outside of Japan .MIAPJ0000PUS was up 0.9 percent helped by gains in materials and energy in line with Wall Street.

Hong Kong's Hang Seng Index .HSI led the gains in Asia leaping to their highest in 28 months spurred by gains in banks, property and oil counters. The index jumped higher after breaking above a key Fibonacci retracement level.

South Korea's KOSPI .KS11 closed up 0.9 percent on foreign buying with banks and insurers up amid strengthening expectations for an interest rate hike after the Australia central bank's surprise decision to increase rates.

Japan's financial markets are closed because of a public holiday.

The dollar stayed on the backfoot in Asia with the euro holding around $1.4000 EUR= and the Aussie AUD= just off parity ahead of the Fed meeting.

Traders said the market was unwilling to make new bets ahead of the U.S. central bank's policy decision.

"The announcement itself could well be a non-event, since so much is priced in, but in the medium- and longer-term, Asia looks increasingly set to be on the receiving end of a lot more capital inflow," DBS said in a research note.

"Inflows are likely to be strong for the next 5-10 years as Asian demand growth outpaces that of the G3," it said. "Currencies will remain under upward pressure and ditto for equities."

Due at around 1815 GMT, the Fed is expected to announce plans to buy hundreds of billions of dollars in U.S. government debt in order to foster a stronger economic recovery. more