Asian shares rose on Wednesday buoyed by strength in global equities markets, firmer economic sentiment in Germany and hopes of a deal from US budget talks, while the dollar came under pressure ahead of the Federal Reserve’s policy decision.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent to a 16-month peak. The index has hit successive 16-month highs since December 5.

Australian shares were up 0.4 after touching a nearly 17-month high on the back of Wall Street gains and higher iron ore prices.