Asian shares higher as geopolitics ease; China shares buck trend

Asian bourses were mostly higher on Tuesday tracking Wall Street's overnight gains amid easing geopolitical jitters save for markets in China and India.

Stocks on Wall Street posted gains for the second straight session on light trading volumes. The Dow Jones Industrial Average closed 0.1 percent higher, off of its earlier highs. The S&P 500 also shaved earlier gains but ended 0.3 percent higher, while the tech-heavy Nasdaq rose 0.7 percent, with pharmaceuticals among the top gainers.

On Monday, Russian President Vladimir Putin said his country is coordinating with the International Red Cross to send humanitarian aid to Ukraine.

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U.S. President Barack Obama said Iraq made important strides toward rebuffing a militant group with the designation of a new prime minister and urged the formation of an inclusive government.

"The de-escalation in Ukraine and what looks like a change of direction in Iraq should take the heat out of the panicked selling of the past two weeks," said Evan Lucas, market strategist at IG.

Over in the Middle East, Israel and Hamas agreed on Sunday to an Egyptian proposal for a new 72-hour ceasefire.

Mainland shares down

China's Shanghai Composite Index bucked the regional trend, falling 0.1 percent as investors turned cautious ahead of key economic data. Urban investment, industrial output and retail sales figures for the month of July are due for release on Wednesday.

Losses in Chinese bank stocks weighed on the bourse, notably the Bank of Communications and Industrial and Commercial Bank of China which tumbled 1.6 and 0.9 percent, respectively.

Shares of Yonghui Superstores surged 10 percent after Dairy Farm International announced it was buying a 19.9 percent stake in it for $925 million.

Meanwhile, Hong Kong stocks scraped earlier losses to trade unchanged.

Sydney jumps 1.3%

Australia's benchmark S&P ASX 200 posted its biggest one-day rise since July 2 to finish Tuesday at a one-week high of 5,530.

Strong gains in banking stocks provided upward momentum for the bourse. Westpac scaled nearly 2 percent while National Australia Bank and Commonwealth Bank of Australia added 1.5 percent each.

Miners also had a good rally on Tuesday; Fortescue Metals and Rio Tinto soared 2 percent and 1.6 percent, respectively.

Shares of Domino's Pizza bolstered 14 percent following the announcement of a robust 50 percent rise in full year profits.

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Tokyo rises 0.1%

Japan's benchmark Nikkei index was lackluster after raking in its biggest daily jump in four months on Monday. A weaker Japanese yen, trading at 102.3 against the greenback, did little to help sentiment.

Top gainers include Mitsubishi UFJ Financial Group and Toyota Motors which piled on 1.0 and 0.8 percent each.

Meanwhile, wholesale prices for July rose 4.3 percent on-year, according to data from the Bank of Japan released in early trade. This is slightly below the median market forecast for a 4.4 percent annual increase and follows a 4.6 percent yearly rise in June.

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Seoul up 0.1%

South Korean shares pared earlier gains to end Tuesday's trading session slightly higher, despite the government announcing additional stimulus aimed at boosting the domestic service sector.

Outperforming the bourse was Kia Motors which rallied 2.2 percent.

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India, Singapore watched

Indian shares finished higher by 1.4 percent with results from Tata helping to boost sentiment in the country.

India's consumer price inflation accelerated to a two-month high of 7.96 percent in July, driven up by surging prices for vegetables, fruit and milk, government data showed on Tuesday. Analysts polled by Reuters expect the inflation data to be little changed from the previous month

The country also released its industrial output data for June, which expanded by an unexpectedly slow 3.4 per cent from a year earlier.

Singapore shares lost earlier gains to finish flat. The Southeast Asian economy expanded an annualized 0.1 percent in the second quarter, above expectations for a 0.1 percent contraction in a Reuters poll, according to data on Tuesday.

Thai markets remain closed for a holiday on Tuesday.