Asian shares ended mixed on Tuesday amid optimism over the global growth outlook. But bold easing measures from the Bank of Japan failed to lift Tokyo equities and the yen rebounded from a brief sell-off as investors digested the central bank's actions.
The spotlight in Asia fell on the BOJ, which doubled its inflation target to 2 percent and adopted an open-ended commitment to buy assets, surprising markets that had expected another incremental increase in its 101 trillion yen ($1.12 trillion) asset-buying and lending program.
The reaction in Japanese markets, however, reinforced market perceptions that the BOJ could have done more.
Japan's benchmark Nikkei Index surged as much as 0.8 percent before giving up all gains to end down 0.4 percent, while the broader Topix shed 0.44 percent to 901.15.
Tokyo shares have been rising in tandem with the yen's slide against major currencies on expectations for bolder BOJ steps. The Nikkei tumbled 1.5 percent on Monday after investors booked profits from the index's 2.9 percent rally on Friday.
The dollar rose as high as 90.18 yen, but was last trading down 0.6 percent at 89.09 yen. It touched a fresh 2-1/2-year high of 90.25 on Monday. The euro rose to 120.18, before falling 0.5 percent to 118.88 yen. The euro hit its peak since May 2011 of 120.73 on Friday.
(Read More: Further Yen Weakness Unlikely: Japan's 'Mr Yen')
Olympus Corp ended up 6.6 percent to 1,985 yen, reaching the 2,000-line at one point for the first time since October 2011, after UBS Securities started its coverage with a 'buy' rating and a target price of 3,000 yen as the company on Monday submitted to the Tokyo Stock Exchange a written affirmation on the internal control system as stipulated in the securities listing regulations.
South Korean shares rose as technology and auto sectors rallied after the Bank of Japan announced aggressive monetary easing measures, resolving uncertainty about its actions.
Tech heavyweight Samsung Electronics gained 1.8 percent while Hyundai Motor added 1.9 percent.
The Korea Composite Stock Price Index (KOSPI) rose 0.49 percent to close at 1,996.52 points.
Australian shares ended a volatile trading day flat, retreating from a fresh 20-month high hit earlier.
The S&P/ASX 200 index was 1.6 points higher at 4,779.1 according to latest data, after peaking at 4,801.7 during trade.
Global miners moved higher, with BHP Billiton and Rio Tinto up 0.2 percent and 0.9 percent, respectively.
New Zealand's benchmark NZX 50 index also finished flat, up 1.9 points to 4,187.1.
Onshore China shares closed down, led by weakness in alcohol producers after retail investors were spooked by a news report the sector accounted for half of the top 10 stocks that fund managers sold off last year.
The CSI300 of the top Shanghai and Shenzhen A-share listings closed down 0.5 percent at 2,596.9, slipping off Monday's 7-1/2-month closing high. The Shanghai Composite Index closed down 0.6 percent at 2,315.1.
The official Shanghai Securities News reported that Kweichow Moutai - hit by a toxic substance scare and escalating rhetoric against corruption - was the stock that fund managers sold off the most in 2012. However, after an initial decline, Moutai recovered to close up 0.8 percent.
Hong Kong shares hovered around 19-1/2-month highs for a third session, helped by strength in financials and companies reported to be in talks with Chinese officials on land use for a new economic zone in the southern city of Shenzhen.
The Hang Seng Index closed up 0.3 percent at 23,658.99. The China Enterprises Index of the top Chinese listings in Hong Kong rose 0.6 percent.
China International Marine Containers Group surged 18.3 percent, China Merchants Holdings jumped 8.8 percent and Shenzhen International Holdings soared 21 percent. Hong Kong media reported that all were in talks with Shenzhen's city government on land use in the new Qianhai special economic zone, traders said. They collectively own 27.5 percent of Qianhai's total land mass.
At least 10 companies issued profit warnings overnight. Vanke Properties Overseas slumped 7.5 percent after warning it expects a "significant decrease" in full-year net profit, due mainly to the purchase in May of a Hong Kong-based property company by its parent, China Vanke.
(Read More: China Vanke Shares Soar on B-Share Market Exit)
In Southeast Asia, Singapore's Straits Times Index ended flat while Malaysia's KLCI Composite Index closed 0.4 percent lower.
Shares of Fraser and Neave (F&N) finished 1.95 percent lower after a group led by a Thai billionaire won the takeover battle for the Singapore drinks and property conglomerate in a deal worth around S$13.8 billion ($11.24 billion).
Both India's benchmark BSE Index and the 50-share NSE index ended down 0.6 percent.