Asian shares at new highs on US rally, earnings, fading geopolitics

Wall Street's upbeat performance overnight, helped by a subside in global geopolitical tensions, elevated Asian bourses to fresh closing highs on Tuesday.

U.S. stocks surged on Monday, with the Nasdaq climbing to a 14-year high as investors breathed easier over geopolitical risks. Also helping sentiment was data from the National Association of Home Builders reflecting increasing homebuilder confidence.

The Dow Jones Industrial Average gained 1.1 percent while the S&P 500 advanced 0.9 percent. Climbing to its highest level since March 2000, the tech-heavy Nasdaq bolstered 1 percent.

Read MoreTraders eye Tuesday's data for whiffs of inflation

Geopolitical events

On Monday, Russia said a dispute over its humanitarian convoy to Ukraine had been resolved and a Ukrainian official said more than five hours of discussions in Berlin brought about "moderate progress.".

Over in the Middle East, Israel and Hamas agreed on Monday to prolong their truce for another 24 hours to pursue talks on a long-term ceasefire and a broader deal for the war-ravaged region.

Iraqi and Kurdish troops reportedly reclaimed control of the Mosul Dam after increased U.S. airstrikes aimed to help them during the weekend.

ASX 200
CNBC 100

Tokyo jumps 0.9%

Japan's benchmark Nikkei index rose to a two-week high as a weak yen, which traded near 102.6 against the U.S. dollar, buoyed risk appetite.

Exporter stocks were on a roll; Sony climbed 2 percent while Nikon and Panasonic saw gains of 0.9 and 0.4 percent, respectively.

Sharp and Softbank rallied over 2 percent each on news that both firms are teaming up to develop a low-cost smartphone "Aquos Crystal" in the U.S. and Japan.

Skymark Airlines soared 28 percent after the Nikkei reported of a possible takeover bid from Malaysia's AirAsia. However, both the Japanese carrier and AirAsia have denied being in talks.

Read MoreDoes corporate Asia face reckoning as rates rise?

Mainland shares mixed

China's Shanghai Composite Index rebounded on late Tuesday to end Tuesday at 2,245, levels not seen since 13 December 2008.

Strength in media shares gave the bourse a boost, after Beijing's announced the building of new media;, the Chinese government's official newspaper, bolstered 10 percent.

Similarly, Hong Kong stocks gained steam on late Tuesday to close up 0.9 percent at a more than 6-year high of 25,168.

Galaxy Entertainment notched up 3 percent after a 29 percent rise in first-half net profit while sportswear firm 361 Degrees surged nearly 14 percent after a 28 percent rise in first half earnings.

Sydney up 0.7%

Australia's S&P ASX 200 index held steady at a two-and-a-half-week high as traders digested Tuesday's earnings deluge.

Anglo-Australian mining giant miner BHP Billiton announced after Asian trade that it would spin off a roughly $14 billion company to shareholders, offloading assets it acquired in its 2001 merger with Billiton. Its London-listed shares fell around 3.5 percent on the news.

Among firms which reported earnings, packaging group Amcor and Insurance Australia Group rose 4.6 and 0.5 percent each after posting stellar full-year results. Arrium rallied 12 percent, elevated by a 83 percent rise in full-year profit.

Meanwhile, the Reserve Bank of Australia said Tuesday that interest rates will likely stay at record lows for some yet, amid significant uncertainties around the economic outlook.

Read MoreIs rising unrest in China a threat to the economy?

Seoul rises 0.9%

A buoyant Wall Street helped South Korea's key Kospi index recouped Monday's losses. SK Telecom was the top performer with gains over 3 percent while index heavyweight Posco climbed 1.4 percent.

Hyundai Motor closed up 0.2 percent after a volatile session as concerns linger about whether its unionized workers will stage a strike later this week. The carmaker also announced that it will be converting 4,000 contract workers to full-time in 2015.