ASX gains 1%
Australia's benchmark S&P ASX 200 index also hit a two-week high ahead of the federal budget announcement at 5.30pm SIN/HK. The government expects a deficit of $47 billion in the current fiscal year and traders will be watching to see what deficit-cutting measures will be unveiled.
Read MoreBudget day in Australia: here comes a tax hike
Explosives maker Orica closed down nearly 4 percent after reporting a near 8 percent annual slide in first-half next profit.
Copper miner PanAust soared 34 percent on news that it received an incomplete takeover offer from China's Guangdong Rising Assets Management.
Shanghai slips 0.1%
China's benchmark Shanghai Composite index reversed gains in afternoon trade as investors booked profits on Monday's 2 percent gains.
Commodity stocks that rallied in previous sessions lost ground. Lu'An Environmental Energy and Rare-Earth Group fell 3 percent while China Shenhua fell over 2 percent.
Read MoreChina tensions may have made this market a bargain
The yuan was modestly lower after the central bank guided the currency weaker through its daily reference rate. The move came as U.S. Treasury Secretary Jack Lew said that Beijing should move to a market-based exchange rate.