Nikkei slips 0.1%
After hitting its highest level since July 2007 in the previous session, Japan's Nikkei 225 drifted lower as dollar-yen dipped to the lower-end of the 118 territory.
Exporter stocks were mixed as a result of the stronger currency: Toshiba recouped losses to inch up 0.3 percent, while Toyota Motor, Sony and Canon made losses between 0.3 to 0.6 percent. Index heavyweights Fast Retailing and mobile carrier Softbank led the bourse lower, losing 1.3 and 0.5 percent each.
On the domestic front, the Bank of Japan (BOJ) commences its two-day monthly meeting, a day after gross domestic product (GDP) data showed Japan emerged from technical recession
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Kospi adds 0.2%
South Korean markets rebounded into positive territory in the afternoon session, but light trade prevailed ahead of a three-day-long Chinese New Year holiday.
Hyundai Motor was the outperformer, charging up nearly 3 percent, on news that the carmaker will spend around $1.8 billion by 2020 to expand its production capacity as well as invest in research and development of new vehicles.
Tong Yang Life Insurance bolstered 3 percent, recovering modestly from Monday's 9 percent slump following news that China's Anbang Insurance Group will buy a controlling stake in the South Korean life insurer for about $1 billion.
Meanwhile, the country's central bank kept interest rates unchanged for a fourth straight month, in line with expectations.
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Rest of Asia
Singapore's key Straits Times index finished 0.4 percent lower despite revised data showed the country expanding at a much faster pace than earlier thought in the final quarter of 2014. The Southeast Asian city-state grew an annualized 4.9 percent in the October-December period, more than double of a 2.1 percent estimate from Reuters and much better than the 1.6 percent previous print.
CapitaLand elevated 1.1 percent after reporting a robust 187 percent leap in fourth-quarter profit. Shares of commodity trader Noble Group added a 5 percent decline to Monday's 8.7 percent slump following a critical report byIceberg Research.
Meanwhile, the Jakarta Composite finished up 0.2 percent as Bank Indonesia cut its benchmark interest rate by 25 basis points to 7.50 percent.