Oil prices inched up on Tuesday as investors waited to see whether a Middle East trip by top U.S. diplomat Antony Blinken will bring a halt to the Gaza war, which has raised concerns about supplies from the major producing region.

Japan's real wages fell for a 21st straight month though at a slower pace, while household spending dropped for a tenth consecutive month, showing that inflation outpaced wage recovery and continued to weigh on consumer spending.

China President Xi Jinping is set to discuss the nation's stock market with financial regulators, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The U.S. dollar wobbled near a three-month peak as expectations the Federal Reserve is unlikely to cut rates aggressively this year take hold, while the Australian dollar rose after the central bank said it could not rule out another rate hike.

The euro zone economy showed tentative signs of recovery at the start of the year, according to a survey which showed rising inflationary pressures, bolstering the European Central Bank's case for keeping interest rates at record highs.

Investor morale in the euro zone improved for the fourth consecutive month in February to its highest level since April, but economic weakness in Germany means it is too early to give the all-clear, a survey showed on Monday.