Kospi rallies 1.5%
South Korea's benchmark index jumped to its highest level since August 20 after seasonally adjusted current account surplus edged up in July from the previous month thanks to increasing exports.
Blue-chip stocks led the gains with Samsung Electronics up 2.7 percent and Hana Financial up nearly 3 percent on heavy foreign buying.
Petochemical stocks pared earlier gains as Brent crude fell below $116 a barrel.. SK Innovation and S-oil closed up 0.3 percent after an earlier 1 percent spike while LG Chemical added nearly 2 percent .
Shanghai 0.2% lower
China's benchmark index gave up early gains in rangebound trade with financials in focus on the back of earnings reports. Agricultural Bank of China rose 0.4 percent after reporting a 22 percent rise in quarterly profit.
Weakness in the mining sector weighed on the index. Baoshan Steel fell over 1 percent while Jiangxi Copper lost 3.5 percent and Zhongjin Gold fell 2 percent on the back of lower metal prices.
(Read more: For China inflation hawks, it's time to watch pigs)
Australia's benchmark index reversed earlier losses to approach the 5,100 level but caution ahead of elections next week capped any further gains.
In earnings news, flagship carrier Qantas surged 14 percent after doubling its underlying annual profit while shopping mall operator Westfield Group fell 0.7 percent after its first-half revenue dipped 0.3 percent.
Gold miners weighed on the index after bullion broke its five-day rally. Kingsgate Consolidated slumped 22 percent while Perseus Mining tanked 11 percent and Medusa Mining declined 8 percent.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter