Shanghai Up 0.4%
China's benchmark index staged a modest rebound after dropping to a one-week low in the previous session as investors went bargain hunting. Financials rebounded with China Merchants Bank up over 1 percent.
(Read More: What China's Battered Stock Market Is Telling Us)
Food producers were higher after rising food prices led to the better-than-expected June inflation figures. Cereal maker Zheijang Beingmate climbed over 5 percent while Guangxi Royal Dairy rose 1 percent.
"Food prices are going to be discussed as a wild card variable. It's not a worry yet but we're going to continue to see all kinds of mechanisms put in place for China to import food because there is a looming food shortage," said Thomas Murphy, managing partner at Family Office Research & Management.
Sydney Increases 1.5%
A rally in banks led Australia's benchmark index to hit a one-month high at 4,894 points. Macquarie Group increased nearly 5 percent while Westpac rose 2 percent after a dismal survey of business conditions strengthened the chances of a rate cut from the Reserve Bank of Australia.
Shares of aluminum producer Alumina rallied 3 percent after Alcoa's better-than-expected earnings.
Meanwhile, the Australian dollar rose above the $.091 handle against the greenback, retreating further from this month's three-year low of $0.9094.
(Read More: Could This Be the Week Aussie Breaks Below $0.90?)