Asian shares largely wiped out their morning gains on Tuesday afternoon, as investors remained cautious ahead of a European Central Bank meeting this week, while also watching out for the fallout from Russia's gas cut.

US stocks are set to open higher on Tuesday after Monday's Labour Day recess, with E-mini futures for the S&P 500 index up 0.31 per cent.

FTSE futures, however, were down 0.2 per cent, indicating a choppy start in London. European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in 20 years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.

MSCI's gauge of Asia-Pacific stocks outside Japan was up 0.02 per cent at 0532 GMT. Japan's Nikkei 225 was 0.03 per cent higher.

China's benchmark CSI300 Index rose 0.58 per cent, after the country's policymakers pledged on Monday to make renewed efforts to boost the Covd-hit economy. Hong Kong's benchmark Hang Seng Index, however, slid 0.07 per cent.

The yuan also rebounded from a more than two-year low against the US dollar, after the central bank said it would cut foreign exchange reserves ratio to support the currency.

"Bulk commodities will be dependent on the impact of Chinese stimulus and the success of this will be reflected in the major miners," said John Milroy, an investment adviser at Ord Minnett.

Australia's S&P/ASX 200 fell 0.36 per cent, after the Reserve Bank of Australia (RBA) expectedly increased the cash rate by 50 basis points.

The European Central Bank will meet on Thursday to discuss interest rate actions. A US Federal Reserve meeting will follow on September 21.

"Soaring inflation will likely see the ECB deliver another outsized rate hike this Thursday," said analysts from the Commonwealth Bank of Australia.

European energy ministers are set to discuss measures to curb power prices when they hold an emergency meeting on Friday.

"There is a feeling that the next 75 bps hike in September will see a deceleration afterwards," said Sean Darby, Hong Kong-based global head of equity strategy for Jefferies.

Oil prices slipped on Tuesday, paring the previous session's 3 per cent gain, as a deal among members of the OPEC+ group to cut output by 100,000 barrels per day in October was seen as a largely symbolic move to stem the market's recent slide.

Brent crude futures fell 0.7 per cent to $95.07 a barrel, widening morning losses. US crude futures, however, were still up 2.12 per cent at $88.71 a barrel.

Spot gold rose 0.49 per cent to $1,718.2 an ounce.

The dollar index inched down 0.06 per cent after touching a 20-year peak in the previous session.

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