China will boost economic demand in a strong, reasonable and moderate manner and accelerate infrastructure construction in the third quarter of the year, officials from the state planner said on Tuesday.

China will step up macro-economic policy support for the economy, state media quoted Premier Li Keqiang as saying on Tuesday, after data showed growth unexpectedly slowed last month.

Japanese manufacturers' business confidence improved in August after last month's stall, while service-sector firms' mood rose for a second month to the highest point in nearly three years, the Reuters Tankan poll showed.

Asian shares tracked solid Wall Street performance on Wednesday as strong overnight earnings for U.S. retail giants pointed to further scope for the Federal Reserve to tackle inflation with rate hikes.

Oil prices rose on Wednesday, recovering from six-month lows hit the previous day, as a larger-than-expected drop in U.S. oil and gasoline stocks reminded investors that demand remains firm, if overshadowed by the prospect of a global recession.

Japan logged a trade deficit for a 12th consecutive month in July, data showed on Wednesday, as pressure from its dependence on commodity imports offset a jump in exports.