Asian stock markets extended the previous day's rally after the latest batch of economic data from China boosted regional confidence.
The Nikkei hit a new one-month high, Australia's S&P ASX 200 rose to a one-week high, and Indian equities rallied 2.6 percent. The Shanghai Composite and South Korea's Kospi climbed to a three-month high each.
Syria jitters fade
Receding fears of an imminent strike on Syria also underpinned gains in Asia. Russia offered a non-military solution to the crisis by asking Damascus to put its chemical weapons under international control in a bid to avoid a possible military confrontation.
Wall Street shares advanced on the proposal. The Dow rose back above the 15,000 level and the Nasdaq rallied to a thirteen-year high. But the White House has reacted with skepticism to Russia's offer, urging Congress to continue to back military action.
Shanghai 1.1% higher
China's benchmark index climbed above 2,220 points to hit a new three-month high for a second consecutive session following the latest release of economic data for August.
Industrial output rose 10.4 percent from a year ago, topping Reuters forecasts for a 9.9 percent rise. Meanwhile, retail sales climbed an annual 13.4 percent and fixed asset investment grew 20.3 percent year-on-year from January to August, both slightly above market estimates.
Shippers rallied with China Shipping Container Lines and China Shipping Development surging 10 percent each on expectations of a cargo rate increase.
Banks pulled back after notching up gains of 10 percent on Monday. ICBC closed down over 2 percent while Agricultural Bank of China and China Construction Bank lost over 1 percent each.
India rallies 3.67%
India's benchmark index resumed trade after a long weekend to hit a six-week high as the rupee climbed to a two-week high after the rupee rose to a two-week high on strong August exports. The trade deficit narrowed to $10.9 billion, helped by a double-digit rise in merchandise exports.
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Industrial stocks led the gains. Tata Motors climbed 10 percent and Larsen and Toubro jumped over 6 percent.
Nikkei up 1.5%
Japan's benchmark index rose above the 14,400 level on the prospect of increased stimulus spending following the weekend's announcement that Tokyo will host the 2020 Olympics.
Infrastructure stocks extended the previous day's rally. Taiheiyo Cement rose 6 percent while construction firms Taisei and Kajima increased 11 and 7 percent, respectively.
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"While this decision is certainly another boost for the image of the Abe government, it is unlikely to make a material difference to the economic outlook. Even the most generous estimates suggest that the Games would add barely 0.1 percentage points to average GDP growth over next seven years," wrote analysts at Capital Economics in a report.
Also helping sentiment were minutes from the latest Bank of Japan meeting, which showed that members expected the consumption outlook to improve thanks to rising income and employment.
Sydney adds 0.5%
Australia's benchmark index crossed the 5,200 mark to hit a one-week high, buoyed by solid gains in mining stocks as investors cheered an economic revival in China, the nation's top trading partner.
"With questions still arising about the composition of the Australian Senate, the local market is returning to 'business as usual' conditions despite the government-elect's law-passing dilemmas," wrote Evan Lucas, market strategist at IG in a note.
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Seoul rises 1%
South Korea's benchmark index crossed the 1,980 mark to hit its highest levels since June 5, just one day after closing at a three-month high, due to renewed foreign interest in local stocks.
China-sensitive sectors outperformed on increased confidence over the mainland's recovery. Steelmakers Hyundai Hysco and Hyundai Steel rose nearly 3 percent each.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter