Mining contractor Mcmahon Holdings jumped 25 percent after the firm delivered a bullish earnings guidance, stating that the sale of its construction business to Leighton Holdings had removed uncertainty and risk from its balance sheet.
Gold miners reversed the previous day's losses as the yellow metal snapped a three-day losing streak. Medusa Mining rose 4 percent.
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Investors awaited Treasurer Wayne Swan's budget, which will be unveiled later on Tuesday. The budget may provide a sense of how much the economy is struggling, analysts say.
As the yen paused its recent decline, South Korean exporter stocks recovered from recent steep losses. Automakers rallied, with Hyundai Motor adding 2.6 percent and Kia Motors up 3.8 percent.
Tech stocks also lent support to the benchmark index, with market heavyweight Samsung Electronics gaining 1.5 percent and LG Electronics rising over 2.7 percent.
The 14-day relative strength index (RSI) for the benchmark Kospi is at 54, indicating that the index is in an upward trend. The index has now recovered 1.6 percent from a two-week low at 1,935 points in the previous session.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter