Oil prices rose in early Asia trade on Wednesday, recovering from the previous day's plunge, as a stronger OPEC outlook on China's demand helped offset bearish global investor sentiment in the wake of the recent U.S. bank failures.

The dollar found support in Asia on Wednesday as investors dialled back expectations of U.S. rate cuts as fear of a banking crisis ebbed and another stubbornly high inflation print landed.

Passenger car sales (PAMA members) in the country fell by 80 percent in February, 2023 compared with the same month last year, data showed on Monday, with hints that non-production days and a decline in purchasing power had contributed to the decline.

U.S. consumer prices likely rose at a solid pace in February amid sticky rental housing costs, but economists are divided on whether the data will be enough to push the Federal Reserve to hike interest rates again next week after the failure of two regional banks.

Shockwaves from the collapse of Silicon Valley Bank further pounded global bank stocks on Tuesday as assurances from President Joe Biden and other policymakers did little to calm markets and prompted a rethink on the interest rate outlook.

Asian markets tumbled on Tuesday as investors sharply cut their exposure to bank stocks amid fears of contagion from a brewing crisis in the U.S., while uncertainty over  monetary policy also weighed ahead of key U.S. inflation data.