 "Asian shares steady, dollar gains after weak US data")
MSCI's broadest index of Asia-Pacific shares outside Japan was flat, and not far from a three-week low touched on Monday.
Japan's Nikkei index eased 0.2%, adding to a 2.4% slide on Monday, its first trading day of 2014.
US stocks slipped on Monday after a mixed batch of economic reports, resulting in the Standard & Poor's 500 losing in the first three trading sessions of 2014 after ramping up 30% last year.
Data from the Institute for Supply Management showed the pace of growth in the US services sector slowed for a second straight month in December with business activity expanding at a slower rate and new orders contracting.
A separate report from financial information firm Markit said its services sector purchasing managers index eased slightly in December from the prior month, but data from the US Commerce Department showed new orders for factory goods rebounded in November, as expected.
All eyes in the market will be on Friday's nonfarm payrolls data, which will provide new clues on how well the US economy is recovering and how fast the Federal Reserve might unwind its stimulus programme, which it began to taper last month, and how long it will keep its interest rates low.
"No more than 20% of investors think that there is a serious chance that the Fed will hike before the middle of 2015," Steven Englander, global head of G10 FX strategy at Citigroup, wrote in a note.
More From This Section
"A nonfarm payroll print of 250,000 or more would raise alarm among investors that the recovery was getting out of hand and that the Fed would be behind the curve."
He said commodity and emerging currencies would be sold off in such a scenario, while the euro and the Swiss franc could be a safe haven.
The euro was steady at $1.3622, taking a pause after coming off a four-week low of $1.35715 set on Monday.
The greenback was up 0.2% at 104.47 yen, recouping some of Monday's 0.6% decline after the soft US services data.
Against a basket of major currencies, the dollar <.DXY> added 0.1%.
According to data from the Commodity Futures Trading Commission, currency speculators pared bets in favour of the dollar in the week ended December 31 to the lowest in about six weeks.
Before Friday's jobs report, investors will focus on the minutes of the Fed's December policy meeting, due out on Jan 8, and the European Central Bank's policy gathering on Thursday.
Late on Monday, the US Senate confirmed Janet Yellen, a key force behind the Fed's unprecedented and controversial efforts to boost the US economy, as the next Fed chair to succeed Ben Bernanke, whose second four-year term expires on January 31.
Among commodities, US crude futures added 0.3% to $93.70 a barrel after having fallen 0.6% overnight to a one-month low.
Gold was steady at $1,238.05 an ounce, taking a breather after five straight days of gains and sitting not far from a three-week high of $1,248.30 set on Monday.