U.S. business inventories increased slightly more than expected in May amid solid rises in stocks at wholesalers and retailers, a trend that could see inventory investment contributing to economic growth in the second quarter.

The global economy is set for modest growth over the next two years amid cooling activity in the U.S., a bottoming-out in Europe and stronger consumption and exports for China, but risks to the path abound, the International Monetary Fund said.

U.S. retail sales were unchanged in June as a drop in receipts at auto dealerships was offset by broad strength elsewhere, a display of consumer resilience that bolstered economic growth prospects for the second quarter.

Oil prices were steady in early Asian trade on Wednesday, with global benchmark Brent hovering near the one-month low it hit in the prior session, as signs of weakening demand growth in China clashed with the prospect of declining U.S. oil stockpiles.

The dollar was mixed on Wednesday after a modest but short-lived boost following better-than-expected U.S. retail sales data, as traders focused on the prospect of Federal Reserve rate cuts as early as September.

Most Asian stocks rose on Tuesday, tracking gains on Wall Street amid increasing expectations for a September interest rate cut, while Chinese markets lagged on concerns over a cooling economy and headwinds from U.S. politics.