Attention is also on meetings by major central banks, with Japan's reported to be considering a tweak to its yield control policy, while observers expect the Federal Reserve to hold interest rates.
There is a sense of relief on trading floors that the Israel-Hamas conflict has been contained so far, with optimism growing that other regional players including Iran and Saudi Arabia will not get involved. After surging almost three percent Friday on fears of a wider conflagration, both main contracts tumbled more than three percent at the start of this week as Israel opted for more day-to-day targeted attacks in Gaza aimed at weeding out the militants.While Prime Minister Benjamin Netanyahu has ruled out a ceasefire, Yeap Jun Rong at IG Asia said there were"expectations that the conflict may still be contained".
Israel's intensifying land and air campaign since Hamas's October 7 attacks has heightened fears for the 2.4 million civilians trapped inside Gaza, where the Hamas-ruled health ministry says more than 8,300 have died. With worries about supplies from the crude-rich Middle East subsiding for now, both main oil contracts edged up slightly Tuesday.Data showing China's factory sector activity shrank in October weighed on sentiment, dragging on Hong Kong and Shanghai, while there were also losses in Seoul, Manila and Jakarta.