Experts explained the dip in equity and currency markets as normal given Japan's economic transition. "This grand experiment ['Abenomics'] is multi-year so from an investor standpoint, we can be a bit patient." said Clay Carter head of international equities at Perennial Investment Partners.
Kospi 3% Higher
Seoul's benchmark index hit a new three-week high on optimism over a continuation of U.S. monetary stimulus and a stronger yen, which raises the competitive advantage of domestic exporters.
A 5 percent rally in market heavyweight Samsung Electronics and LG Electronics supported the index. Oil refiners also gained with SK Innovation rising 5.5 percent after Brent crude traded near a 3-month high.
Sentiment also improved after the Bank of Korea left interest rates unchanged at its policy review but raised its 2013 growth forecast to 2.8 percent from a previous forecast of 2.6 percent.
Australia Climbs 1%
Australian investors cheered a stronger-than-expected employment report for June. Jobs rose by 10,300 versus market expectations for a flat reading, sending the Australian dollar spiking over 1 percent to $0.9297 and driving the benchmark index to its highest levels since May 31.
"A loosening labor market will continue to take pressure off wages, leaving the RBA [Reserve Bank of Australia] with room to cut rates to support Australia's rebalancing. On balance, we still see the RBA as likely to cut rates next month," wrote economists at HSBC in a research note.
(Watch Now: Trading Australia's Strong Jobs Report)
Gold miners were the session's out performers with Perseus Mining surging 23 percent, Medusa Mining climbing 21 percent and Kingsgate rising 16 percent after prices of the yellow metal hit a two-and-a-half-week high.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter