The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, have been cutting output since May by 9.7 million barrels per day, or 10% of global supply, after the virus destroyed a third of global demand.
The neighbours are also putting in place travel arrangements for their residents who hold long-term immigration passes for business and work in the other country, their foreign ministries said in a joint statement.
The benchmark Nikkei share average slipped 0.87% to close at 22,587.01 while the broader market, Topix fell 0.5% to 1,565.15.
The dollar was marginally higher in narrow ranges against most currencies on Tuesday as renewed concerns about diplomatic tension between the United States and China and rising coronavirus cases put a dent in risk appetite.
The government of Sharjah, the third largest of the United Arab Emirates, started marketing US dollar-denominated 30-year Formosa bonds on Tuesday at about 4.375%, a document showed.
The Office for National Statistics said Tuesday that the economy grew by 1.8% in May from the previous month. Despite this increase, it is 24.5% smaller than it was in February.
London-listed stocks snapped two straight sessions of gains on Tuesday as fears of another wave of the COVID-19 pandemic overshadowed signs of a tentative economic recovery in May.
Asian shares climbed toward five-month peaks on Monday as investors wagered the U.S. earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.
The blue-chip FTSE 100 was up 1.3%, with fewer than 10 stocks in the red in early trading, while the mid-cap FTSE 250 added 1.0%, led by the auto, personal goods and mining sectors.