Shares of Japanese advertising firm Dentsu sank 9 percent after announcing it will put 8 million new shares on the block, amounting to $1.2 billion.
Optimistic comments from Bank of Japan Governor Haruhiko Kuroda were unable to push Japan's benchmark index into positive territory. Kuroda said that the central bank's stimulus program is working to place the economy on track for a recovery.
(Watch Now: After Abenomics, Japan Turns to Womenomics)
Shanghai Above 2,000
China's benchmark index reversed earlier losses to hits its highest level in over a week after the official China Securities Journal reported that the economy's growth model remained stable, but said that government debt threatened the recovery. Still, the index is well-below it's 200-day simple moving average of 2,183.
Gains were supported by a strong rally among property counters. China Merchants Property surged over 5 percent while Gemdale rose 4.8 percent.
Major banks cooled their pace of declines in afternoon trade following an initial 1 percent drop after the People's Bank of China haled its regular open market operations for a second straight week. Bank of China and Industrial and Commercial Bank of China pared losses to inch down 0.7 percent each.
(Read More: China Banks May Need 'Tape' to Hold Together)
Kospi Up 0.8%
Exporter shares in Seoul erased earlier losses to lead the benchmark index higher, led by technology stocks. Market heavyweight Samsung Electronics rallied over 1 percent ahead of posting second-quarter earnings guidance on Friday.
Electronics maker Samsung SDI jumped over 2 percent and memory chip maker LG Display rose 1 percent.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter