JPMorgan economists no longer anticipate a U.S. recession this year.

Japanese real wages fell for a 15th straight month in June, while nominal pay growth also slowed, suggesting companies will need to do more on salary hikes to drive a virtuous growth cycle and allow the central bank to consider exiting easy policies.

The dollar inched higher on Tuesday but traded in a narrow range as investors were hesitant to take on new positions ahead of a key U.S. inflation reading this week, while focus in Asia turned to China's trade data out later in the day.

Asian share markets were mostly weaker while the U.S. dollar higher on Tuesday as investors awaited inflation readings from China and the United States to deliver an updated outlook on the health of the global economy.

Thailand's annual headline inflation was weaker than expected in July, helped by lower food and energy prices, and the commerce ministry said on Monday it projected smaller consumer price rises for the rest of the year.

China's foreign exchange reserves rose more than expected in July, official data showed on Monday, as the dollar fell against other major currencies.