China's factory activity weakened in October as protracted COVID-19 restrictions disrupted production and subdued demand, a private-sector survey showed on Tuesday, suggesting a weaker economic recovery in the fourth quarter.

Oil prices rose on Tuesday, paring losses from the previous session, as a weaker U.S. dollar offset widening COVID-19 curbs in China that have stoked fears of slowing fuel demand in the world's second-largest oil consumer.

Asian shares rose and bond yields firmed in early trade on Tuesday despite mild losses from Wall Street overnight as investors turned their focus to the Federal Reserve's policy meeting this week for hints on what comes next.

Asia's factory output weakened in October as global recession fears and China's zero-COVID policy hurt demand, business surveys showed on Tuesday, adding to persistent supply disruptions and darkening recovery prospects.

Toyota Motor Corp on Tuesday posted a worse-than-expected 25% drop in quarterly profit and cut its annual output target, as the Japanese firm battles surging material costs and a persistent semiconductor shortage.

 The U.S. dollar sank from a one-week top against a basket of major peers on Tuesday, as traders weighed the odds of a less aggressive Federal Reserve at Wednesday's widely watched monetary policy meeting.