Shanghai up 0.34%
Mainland shares erased losses in the final hour of trade while the yuan fell to its weakest level against the dollar in over a year.
Earlier in the session, the index hit a two-week low following Monday's 1.5 percent plunge on fears that a spate of new market listings will tighten liquidity after 19 new initial public offering filings were listed on the China Securities Regulatory Commission website on Monday.
Read More'China's Twitter' Chairman: We priced our IPO too low
Property developers rallied on news that China plans to establish a land registration system by 2016 in an effort to make the real estate market more transparent. Gemdale surged 6 percent but China Merchants Property jumped nearly 2 percent.
In Hong Kong, affiliates of state-owned China Resources Group were sold off after its chairman Song Lin was fired on Monday. China Resources Enterprise lost over 3 percent, China Resources Power tumbled 10 percent and China Resources Cement fell 4 percent.
Nikkei slips 0.85%
Japan's benchmark Nikkei erased earlier gains to end at a one-week low as the yen strengthened against the dollar in afternoon trade, retreating from a two-week low of 102.71 hit earlier this month
Earlier in the session, the index rose on news that the government overhauled its public pension fund - the world's biggest - in a push toward Prime Minister Shinzo Abe's goal of riskier investments and reduced reliance on government bonds.
Banks led the declines with Mitsubishi UFJ Financial down 2.3 percent while Mizuho Financial and Sumitomo Mitsui Financial eased 1 percent each.
Read MoreJapan is open for business: Shinzo Abe