Global factories had a weak finish to 2023, with euro zone activity contracting for an 18th straight month in December and Asia's manufacturing powerhouses taking a hit due to China's patchy economic recovery.

Asian shares extended a global sell-off on Wednesday, while the dollar held gains, as market optimism about early and aggressive U.S. interest rate cuts ebbed ahead of the release of Fed minutes and jobs data.

Oil prices were little changed in Asian trade on Wednesday after sharp moves earlier in the week, as markets weighed concerns about the U.S. economy against potential supply disruptions from ongoing tensions in the Red Sea.

The dollar eased slightly on Wednesday though it stayed near a two-week high, underpinned by a confluence of factors including elevated U.S. Treasury yields and a cautious turn in risk sentiment that weighed on Wall Street.

Asia's factory activity weakened in December, portending a shaky start for the region's manufacturing powerhouses in 2024 as China's patchy economic recovery impeded a broader revival in demand.

Singapore's economy grew 2.8% in the fourth quarter year-on-year, preliminary government data showed on Tuesday, faster than some economists expected and helped by improvements in construction and manufacturing.