Equity markets lacked direction in Asia on Wednesday, as was the case overnight in the U.S., though Australian stocks outperformed on strong gains among the country's biggest banks. Markets are expected to remain in narrow ranges ahead of policy statements from the European and Japanese central banks, due Thursday. Some investors are avoiding aggressive trading as a result.

Stocks across Europe dropped on Tuesday, with the exporter-heavy DAX 30 index DAX, -1.25% ending 1.3% lower at 12,430.39-its worst session since June 29. More broadly, European benchmarks finished the session under pressure as the euro stepped up to a 14-month high against the U.S. dollar and as disappointing corporate earnings reports rolled in. A stronger euro can hurt European exporters as it makes products more expensive for overseas customers.

The S&P 500 and the Nasdaq closed at records on Tuesday as gains in tech stocks offset weakness in telecom services and energy shares. A surge in Netflix Inc. NFLX, +13.54% shares on the back of strong earnings gave the broader tech sector a boost and helped to underpin the large-cap index push into the positive territory.