European stocks closed with small gains Tuesday as analysts pinned the muted action on traders waiting for news from central banks due later in the week.

Investors waded through a slew of corporate updates, including a higher takeover bid for brewer SABMiller PLC and the potential breakdown of a deal involving Italy's Mediaset SpA that drove its shares down by double digits.

The Stoxx Europe 600 SXXP, +0.10% inched up 0.1% to finish at 341.26, after ending 0.2% higher on Monday.

On Tuesday, U.S. equity markets closed mixed while stocks in Europe traded slightly higher with all eyes were on the Fed, which concludes its two-day policy meeting later on Wednesday.

The U.S. central bank is widely expected to stand pat on monetary policy and the markets will sift through its statements - a post-meeting news conference will not be held - for any hints of the timing on future interest rate hikes. Expectations of a September increase are clouded ahead of the U.S. presidential election in November, but markets see a roughly 50-50 chance of a rise in December.

Asian stocks climbed to fresh near one-year highs and the Japanese yen weakened on Wednesday as awaited central bank meetings this week that could see fresh stimulus in Japan and provide clues on U.S. interest rates.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.2 percent, climbing to its highest since Aug. 11 2015. It is up 10 percent in a month.

Japan's Nikkei .N225 gained 1.1 percent, leading the region.

There is a near-consensus among traders that the Bank of Japan will ease on Friday, most likely by ramping up its already massive purchases of government bonds and riskier assets.

Cutting interest rates into negative territory has proved unpopular with the public and the government, so deepening those cuts is a less likely option, sources familiar with central bank thinking say.

But some market watchers say a BOJ move may be too close to call, and many central bank policymakers may prefer to hold off on action as they expect an anticipated fiscal stimulus package and a delay in next year's sales tax hike to boost growth.

Japanese Prime Minister Shinzo Abe will announce details of a long-awaited 27 trillion yen ($254.2 billion) fiscal stimulus package later on Wednesday, Fuji TV reported. That would be more than expected earlier, but critics will be watching to see how much is actually new spending.

Hong Kong stocks .HSI rose 0.4 percent as mainland Chinese investors continued to snap up shares through a stock market connection scheme.