Australian shares are firmer, despite bank stocks being mixed as investors remain anxious ahead of the US central bank's expected decision to keep tapering its stimulus measures.
US stocks have finished solidly higher following a mixed bag of economic data and earnings reports, snapping a five-day losing streak for the Dow Jones Industrial Average.
The Australian share market clawed back some of its earlier losses but still closed lower on Tuesday on the back of investor concern over emerging markets.
US stocks ended Tuesday in mixed fashion after a stream of generally lacklustre earnings reports and a modest upgrade to the International Monetary Fund's economic forecast.
The Australian share market shook off a negative start to finish higher on Tuesday as strength among the major banks outweighed weakness in the resources sector.
The Australian dollar has hit fresh three-and-a-half-year lows amid concerns over China's shadow banking sector and growing strength in the US economy.
American Express's solid earnings has helped pushed the Dow higher but the broader market has fallen after a mixed batch of corporate earnings and economic reports.