The dollar was down on Tuesday morning in Asia, just above a one-week low hit during the previous week, as concerns that the new omicron COVID-19 variant would derail the U.S. economic recovery and delay U.S. Federal Reserve interest rate hikes subsided.

China’s factory sentiment improved in November as the impact of a power crunch subsided and inflation pressures eased. 

The official manufacturing purchasing managers index rose to 50.1, the first time in three months it exceeded the 50 mark that signals an expansion in production. The non-manufacturing gauge, which measures activity in the construction and services sectors, fell slightly to 52.3. Both measures beat economists’ expectations.

Asian share markets weakened sharply in late trading Tuesday, giving up earlier gains as investors worried the Omicron variant will prove more resistant to vaccines and could cause more widespread global economic disruption.

MELBOURNE/SINGAPORE (Reuters) - Oil prices gave up gains on Tuesday, falling more than 2% along with broader financial markets, after a media report cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant.

OTTAWA, Nov 28 (Reuters) - Currency markets calmed on Monday in Asia after the initial shock of the discovery of the Omicron coronavirus variant sent investors scurrying for cover last week, but analysts warned of more volatility with little still known about the new strain.

BEIJING, Nov 27 (Reuters) - Profits at China's industrial firms grew at a faster pace in October, the statistics bureau said on Saturday, providing a buffer for a faltering economy battered by soaring raw material prices.