Oil prices continued their slide after US President Donald Trump said Venezuela will be "turning over" up to 50 million barrels of oil to be sold at its market price following the toppling and capture of the nation's leader.

Japanese shares weighed down regional equity benchmarks, while commodity shares were broadly higher after an overnight surge in industrial metals prices.

The dollar held gains as geopolitical tensions from South America to China took center stage while investors awaited data in the United States for clues about the timing of potential interest rate cuts by the Federal Reserve.

"The most likely outcome is a boost to the global economy because of that oil," Michael McCarthy, CEO of investment platform Moomoo Australia and New Zealand, said about the upheaval in Venezuela. "Clearly it's a negative for the oil price itself, but energy costs are key to your global economic outlook."

"The flip side to this is that the increase in uncertainty for the geopolitical outlook might overwhelm any positive economic benefits," he added.

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US crude fell 1.1 percent to US$56.48 a barrel and Brent fell to $60.22 per barrel, down 0.8 percent on the day. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent. Japan's Nikkei stock index slid 0.25 percent.

Australia's S&P/ASX 200 index, heavily weighted by commodity producers, climbed 0.3 percent.

Caracas and Washington have reached a deal to export up to $2 billion worth of Venezuelan crude to the United States, Trump said on Tuesday.

The arrangement follows a weekend strike on Venezuela as well as comments by the White House that the US was looking at options to acquire Greenland and the use of the US military toward that goal was "always an option".

The dollar index, which measures the greenback against a basket of currencies, was little changed at 98.60 after a 0.2 percent rally on Tuesday. The euro was steady at $1.169, while the yen weakened 0.05 percent to 156.73 per dollar.

Stocks in Tokyo were weighed down after China announced the ban on exports of dual-use items to Japan that can be used for military purposes, Beijing's latest move in reaction to a remark by Japanese Prime Minister Sanae Takaichi about Taiwan.

US share benchmarks brushed aside the global tensions to reach record levels overnight. Copper soared to a record high in the previous session while nickel jumped more than 10 percent as supply concerns spurred gains in key industrial resources.

Looking ahead, a US monthly employment report on Friday will influence the market's monetary policy expectations, which are currently pricing in two more Fed rate cuts this year. Ahead of that are the JOLTS survey and ADP private payrolls on Wednesday.

In the Asian trading day, data showed Australian consumer prices rose by less than forecast in November and core inflation slowed slightly. A private sector survey in Japan showed the service sector expanded last month at its slowest pace since May.

Spot gold fell 0.6 percent to $4,469.04 an ounce. Copper declined 0.1 percent to $13,111.50 a ton.

In early European trading, the pan-region Euro Stoxx 50 futures were up 0.1 percent at 5,959, German DAX futures were up 0.2 percent at 25,099, FTSE futures were down 0.24 percent at 10,123.5. US stock futures, the S&P 500 e-minis, were flat at 6,987.5.

In cryptocurrencies, bitcoin fell 0.8 percent to $92,499.05, and ether declined 0.5 percent to $3,257.66.

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