Asian shares edged up on Tuesday, moving off their session highs amid concerns about volatile crude oil prices and ahead of this week's widely anticipated U.S. interest rate increase.
European shares were expected to rebound in early trading from the previous session's sell-off in which they reached their lowest levels in 2-1/2 months. Spreadbetters are forecasting that Britain's FTSE 100 will open 1.2 percent higher, Germany's DAX will be up by 1.5 percent, and France's CAC 40 will rise by 1.5 percent.
China's yuan weakened further against the USD after the People's Bank of China (PBOC) set its official midpoint rate at its lowest level in more than four years for a second day.
MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.2 percent in afternoon trade while Japan's Nikkei stock index ended down 1.7 percent at a 7-1/2-week low. An expected U.S. rate increase at this week's Fed's monetary policy meeting has added to investor concern.
Oil Down, Up
U.S. crude oil erased earlier gains and was down 0.3 percent to $36.22 after falling as low as $34.53 on Monday before rebounding to end nearly 2 percent higher. Brent crude slid about 0.5 percent to $37.75 after falling as low as $36.33 a barrel on Monday, its weakest level since December 2008. A fall below $36.20 would take oil down to levels not seen since 2004.
Wall Street and major indexes erased early losses and came back slightly in line with higher oil prices. The S&P500 e-mini futures were up 0.1 percent in Asian trade.