Asian stocks gained on Wednesday, taking back some of their recent losses, while the euro hovered just above parity against the dollar ahead of a highly anticipated US inflation report later in the global day.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.65 percent, snapping two straight days of losses, after having slumped to its lowest in two years the day before.

Japan's Nikkei was up 0.45 percent after losing nearly 2 percent the previous day.

But most moves felt insubstantial ahead of the release of US inflation data for June, which economists polled by Reuters expect to have accelerated by 8.8 percent on an annual basis, a 40-year peak.

A high inflation print would likely be read by the US Federal Reserve as a sign they need to continue with aggressive interest rate rises to get on top of surging prices, even if this might push the economy into recession.

The Fed increased rates by a supersized 75 basis points in its last meeting.

"Sharp weakness in oil prices in July suggests that June's (inflation) may mark a peak, however. If so, the most dynamic phase of Fed tightening could conclude with a 75bps rate rise on 27July," said analysts at ANZ.

"However, our expectation is that underlying strength in core inflation and still deeply negative real policy rates means 50bps rate rises will still be appropriate after the summer."

Underscoring the global inflation concerns, South Korea's central bank on Wednesday raised rates by 50 basis points, the biggest increase since the bank adopted the current policy system in 1999, and New Zealand's central bank also increased rates by the same amount.

Worries of higher rates contributing to slowing global economic growth has been a major factor in stock market declines this year, while in currency markets, the main effect has been to boost the safe-haven dollar.

The euro was at US$1.00265 on Wednesday morning, as investors remained focused on whether it would fall below US$1 for the first time since 2002.

It dropped to just a whisker away on Tuesday, falling as low as US$1.00005.

The dollar was also firm on other peers, and its index measure against major rivals was holding solidly at 108.27.

The US benchmark 10-year yield was 2.9743 percent, having traded either side of 3 percent for the last week.

Oil prices paused their overnight declines. Brent crude was little changed at US$99.55 a barrel with US West Texas Intermediate crude at US$95.78.