Mainland indices down
China's Shanghai Composite index pared losses to close up a modest 0.1 percent on Tuesday, backing down from a more than five-year high it attained earlier in the day.
Energy plays China Oilfield Services and Sinopec lost 3.2 and 2 percent respectively, while Founder Securities slumped 3 percent after a court froze some of its assets.
Vanke was in focus after announcing a 26 percent rise in 2014 sales, but the property developer's stock receded nearly 4 percent in Shanghai and 5 percent in Hong Kong.
Capping losses were train makers CSR and China CNR, which rose the maximum allowable of 10 percent for the second consecutive day. Airlines also extended Monday's gains on the back of cheaper oil, with Air China leading the sector with a 4.3 percent gain. China Southern Airlines scaled up 2 percent, unaffected by news that more executives are under investigation for suspected job related crimes.
Earlier in the day, data showed the mainland's services sector grew at its fastest pace in three months in December.
Meanwhile, Hong Kong's Hang Seng index fell 1 percent to a near two-week low.
Read MoreThis week's market watch list: China, Australia data
Kospi falls 1.7%
South Korean shares sagged to a two-and-a-half-week low on Tuesday, as energy stocks were battered by the ongoing slide in energy prices. Earlier in the session, the Kospi index hit 1,877 - its lowest level since August 2013 - before closing down 1.74 percent.
Among top losers, energy producers SK Innovation and S-Oil lost 2.8 and 6.5 percent.
Samsung Electronics notched down 3.2 percent as markets awaited fourth quarter earnings guidance due this week. Rival LG Electronics was in the news for unveiling its second curved phone - the G-Flex 2. Shares of the company reversed early losses to rise nearly 3 percent.
Hyundai Motor and sister firm Kia Motors reported that their combined sales in the U.S. reached a record high of 1.3 million cars on Tuesday, but the news failed to lift the automakers. Shares of the two firms sold off 1.8 and 1.2 percent, respectively.
Nifty loses 3%
India's Nifty index tracked Asia-wide losses to slump to a near two-week low before closing down 3 percent.