On Tuesday, Asian shares rose on hopes that euro zone officials will be acting to corral the debt woes of Greece and avoid another full-blown banking crisis, but the euro failed to hold on to all its gains.

Oil and copper rose after three sessions of wild swings on commodities markets but gold fell further to stand about $300 below the record of more than $1,920 an ounce it scaled in early September.

Policymakers of the European Central Bank said on Monday that officials have been working to increase the firepower of rescue fund of the region in their latest efforts to staunch a crisis that U.S. President Barack Obama said was "scaring the world".

U.S. markets reacted positively and finished more than 2 percent higher on Monday and Nikkei of Tokyo rose 1.6 percent, coming off its lowest close in more than two years.

ECB policymakers hinted that the central bank could cut interest rates next month and some senior officials confirmed the 440 billion euro rescue fund would likely be increased in size.

"Markets are getting more confident around some action plan in Europe, which is positive, but on the other side, markets are also looking for more policy easing from the ECB, which is negative," said Greg Gibbs, currency strategist at RBS in Sydney.

"The combination of both will leave the euro caught in the middle somewhere."

Euro, the single currency, traded around $1.3485, down about 0.4 percent on the day, after rallying from an eight-month low of $1.3360 on Monday. Brent crude oil rose 0.6 percent to $104.55 a barrel and U.S. crude gained 0.9 percent to $80.95 on commodities market.