British manufacturing output dropped over the three months to August by the most in almost three years, according to an industry survey on Tuesday that pointed to a further drop in new orders.
Japan's factory activity shrank for a third straight month in August amid higher oil prices and uncertainty over the global economic outlook, although the pace of decline slowed, a private sector survey showed on Wednesday.
Oil prices ticked up in Asian trade on Wednesday, as markets weighed weak demand indicators from top importer China and the prospect of further U.S. rate hikes against potential supply tightness.
The U.S. dollar perched near a two-month peak on Wednesday as investors looked to the Federal Reserve chair's speech this week for cues on the path of monetary policy, while the yen loitered near 146 a dollar, keeping traders guessing on any intervention.
Most Asian stocks rose on Tuesday, buoyed by a recovery in technology stocks ahead of key earnings from NVIDIA Corp (NASDAQ:NVDA), although concerns over rising U.S. interest rates and slowing Chinese growth held back bigger gains.
The U.S. dollar held close to a 10-week peak versus a basket of major peers, and near its highest since November against the yen, as Treasury yields rose made fresh post-financial crisis highs on Tuesday amid speculation U.S. rates will be stay high for longer.