Japan's Nikkei share average fell to a 7-1/2-week low on Tuesday in the face of volatile oil prices, and as investors avoided riskier assets ahead of an expected hike in US interest rates later this week.

The Nikkei ended 1.7 per cent lower at 18,565.90 points, its lowest since October 22.

While investors widely expect the Fed to announce its first rate hike in nearly a decade on Wednesday, they are also waiting for commentary from policymakers about what will happen next.

The broader Topix dropped 1.7 per cent to 1,502.55 and the JPX-Nikkei Index 400 declined 1.7 per cent to 13,513.34.

Oil prices dipped on Tuesday, with Brent set to extend its losing streak to an eighth day.

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