TOKYO- Asian shares were little changed on Wednesday, with prices capped by continuing concerns over whether the United States can avert an economic slump as lawmakers struggle to break a budget impasse by year end.

Investors will look at a private survey of China's growing services sector due around 0145 GMT on Wednesday for more signs the world's second-largest economy is recovering from lows.

MSCI's broadest index of Asia-Pacific shares outside Japan  was nearly flat, with a 0.4 percent gain in Australian shares and a 0.1 percent drop in South Korean shares. Japan's Nikkei stock average opened down 0.6 percent.    

"The market lacks news that could add to the momentum seen in late November. Investors' focus will remain on whether US. politicians will unravel the fiscal cliff problem," said Kim Hyeong-ryeol, an analyst at Kyobo Securities.

US stocks slipped on Tuesday as investors worried about Washington's ability to avoid a year-end budget crisis, which threatens to push the economy back into recession, but a Greek plan to buy back debt pushed the euro to a seven-week high of $1.3109 on Tuesday.

The pan-European FTSEurofirst 300 closed flat, off a 17-month intra-day high, possibly pausing before a renewed challenge on technical resistance levels into the year-end.

Commodities struggled as weak US manufacturing data and uncertain US. budget talks raised further concerns about the world economy.

The White House and Republicans remain at odds on how to avoid a $600 billion "fiscal cliff" of budget cuts and tax increases set to take effect on Dec. 31.

President Barack Obama dangled the possibility on Tuesday of lowering tax rates in 2013 with a broad US. tax code revamp, but stood firm on insisting rates for the wealthiest must rise as part of a budget deal with Congress.

"He was relatively conciliatory, proposing a two stage approach of a short-term gain for both sides, then deal with the bulk of the problem in 2013," Sebastien Galy, currency strategist at Societe Generale, said in a note to clients.

The Obama scenario had been expected by markets and drove the dollar down, but saw risky assets rise.

"This rally in risk is tempered by a steady profit taking as investors close their books for the year and some need to lock in their profits ... It can be seen in precious metals among others or long cross yen. Short term redemptions are a factor in December after a difficult year," Galy said.

Despite the uncertainty, markets hope US. lawmakers will eventually reach a budget compromise, but the White House and Congress have yet to agree on a long-term deficit reduction plan.

The euro was steady around $1.3094, underpinned by better-than-expected terms for a Greek debt buy-back plan, which is a crucial component of a deal reached last week by international lenders to cut the country's debt. It raised optimism that Athens will secure much-needed emergency aid to avert a default.

The dollar eased 0.1 percent against the yen to 81.83 yen . The strength in the euro saw the dollar index  skid to 79.610, its lowest since Oct. 23, on Tuesday.

Spot gold inched down 0.1 percent to $1,695.56 an ounce, after falling about 1 percent on Tuesday to its lowest in nearly a month as prices broke below key support levels.

US crude futures eased 0.1 percent to $88.39 a barrel.