India's benchmark index entered positive territory after the Reserve Bank of India raised its policy repo rate by 25 basis points to 7.75 percent, in line with market expectations. The rupee trimmed its fall on the news, rising to 61.5 per dollar.
"Monetary and fiscal policy cannot both be accommodative at the same time and have inflation where it is. Hence, the RBI has taken on some of the burden. It's telling you that though growth is so weak, they are still tightening essentially because they see fiscal slippage as a potential risk," said Radhika Rao, economist at DBS.
Shanghai closes down 0.2%
China's benchmark index pared losses after falling as much as 1.7 percent to an eight-week low in volatile trade. Investors were cautious before the much-anticipated plenum meeting of the Communist Party in November, where President Xi Jinping is expected to announce key reforms.
Earlier in the session, news that the People's Bank of China injected $2.1 billion into money markets in its Tuesday open-market operation saw the index jump 1.2 percent. Financials managed to hold onto strong gains with Industrial Bank 4.8 percent higher and Minsheng Bank up 3 percent.
(Read more: When was China's last IPO? A whole year ago)
Railway stocks were some of the biggest laggards. Subway equipment manufacturer CSR Corp and China CNR fell over 3 percent each.
Nikkei sheds 0.5%