Nikkei gains 0.4%
Japan's benchmark Nikkei 225 hurled itself back over the psychologically-important 20,000 mark early Monday, overlooking a larger-than-anticipated fall in retail sales, which slumped 9.7 percent on-year in March. This compared with a drop of 1.8 percent in the preceding month.
Heavyweight components provided the bourse with positive support; industrial robot maker Fanuc, which doubled its dividend payout to 60 percent, soared 3.3 percent to record highs, while Fast Retailing scaled up 1.8 percent.
Earnings season remain underway; Komatsu tumbled 3 percent on the back of an announcement saying that the company expects an 8.7 percent fall in operating profit for this fiscal year through March 2016. Honda Motor trimmed gains to finish 0.3 percent higher ahead of quarterly earnings due for release after the market close.
Meanwhile, a merger between U.S.-based Applied Materials and Tokyo Electron to create one of the world's largest chip-making equipment fell apart due to opposition from U.S. anti-trust regulators. Shares of the latter plummeted 14.8 percent on the news.
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Mainland markets down
After witnessing choppy trade in the morning session, the Shanghai Composite crept deeper into the red to eventually close down 1.1 percent, well off Monday's seven-year peak.
Hong Kong's Hang Seng Index also reversed a higher open to finish the day little changed. The Hong Kong bourse had rose to its highest level since December 2007 in the previous session.
Sinopec jumped 1.4 percent while PetroChina failed to capitalize on Monday's upward momentum, closing down 2.2 percent in Shanghai, after downplaying media reports that their parent companies would be merging. Shares of both firms sold-off in Hong Kong, down over 4 percent each.
Meanwhile, Bank of Communications bounced up 1.9 percent, while China Merchants Bank sagged 0.4 percent ahead of its first-quarter earnings release today.
While the breakneck rally in China as of late have spurred concerns, there are experts who believe the market movements are well-supported.
"There is an element of the 'Greater fool theory' in China, but there is also something fundamental going on. China is in the early stages of liquefying its economy, in both fiscal and monetary perspectives," Viktor Shvets, head of Strategy Research for Asia at Macquarie, told CNBC.
"China has one of the highest real interest rates, but this is going to zero. China is also capable of fiscal stimulus that other countries can't so all the improvements in the equity market can be supported not necessarily by economics, but by much more aggressive monetary and fiscal policy," he added.