China's factory activity shrank at the sharpest pace since the pandemic first emerged nearly three years ago, after Beijing's abrupt reversal of counter-epidemic measures this month set off a wave of COVID infections across the country.

China's factory activity shrank at a sharper pace in December as surging COVID-19 infections disrupted production and weighed on demand after Beijing largely removed anti-virus curbs, a private sector survey showed on Tuesday.

Oil prices held in a narrow range on Tuesday, though the outlook for demand was clouded by a weak manufacturing activity survey from China, and a warning from the head of the International Monetary Fund that the global economy faced a tough year ahead.

The U.S. dollar climbed strongly Tuesday ahead of the week's key economic data.

Most Asian stock markets rose on Tuesday amid growing expectations that U.S. interest rates will rise at a slower pace this year, although uncertainty over China’s economic reopening and a warning on a potential recession kept gains limited.

Oil prices fell for a second straight session on Thursday on an uncertain demand outlook as more countries considered restrictions on Chinese travelers with COVID-19 infections spreading in the top oil-importing nation.