Financial-software developer Hundsun Tech resumed trade to rally by the maximum daily trading limit of 10 percent after an Alibaba-owned company agreed to pay $532 million for a more than 20 percent stake in the firm.
Citic Bank jumped 2.8 percent after its parent firm Citic Group announced that it plans to list most of its operating assets on the Hong Kong Stock Exchange.
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Nikkei 1.3% lower
Japan's benchmark Nikkei closed at its lowest level in two weeks, extending losses from Monday's 2 percent tumble, as a stronger yen overshadowed positive data.
The currency rose to 102.8 per dollar, its strongest level since March 28, despite data showing February's current account returned to a surplus for the first time in five months.
Pharmaceuticals were the biggest losers, with Takeda Pharmaceutical down 5 percent on reports that a U.S. jury ordered the firm to pay a $6 billion fine for a case related to its diabetes drug.
Internet stocks continued their selloff, with Softbank and Rakuten down 4.5 and 2 percent, respectively.
Meanwhile, the Bank of Japan (BOJ) concluded its two-day policy meeting with no change to its current policy, as expected. Speaking after the market close, governor Harihiko Kuroda said the economy's positive cycle remains in place thanks to strong domestic demand.