ASX jumps 2.7%
A sharp rebound in banking and mining counters lifted Australia's S&P ASX 200 index out of the red. Earlier in the morning trading session, the Sydney bourse touched a fresh low since July 2013, after widening losses rapidly from 0.4 to 1.4 percent within minutes from the market open.
"It has been a roller-coaster morning on the Australian stock market... however the mood quickly lightened as U.S. stock futures bounced back strongly and Chinese exchanges clawed back some of their initial losses," analysts from Patersons Securities wrote in a note.
Westpac led the charge in the banking space, up 4.9 percent, possibly on the back of bargain hunting and short-covering. National Australia Bank, Australia and New Zealand Banking and Commonwealth Bank of Australia gained between 3.6 and 4.6 percent.
Oil plays also came off intra-day lows, with Woodside Petroleum and Oil Search closing up 0.8 and 1.6 percent, respectively. Santos inched down 0.4 percent.
Ahead of the release of its full-year results, shares of BHP Billiton erased a lower open to bounce up 2 percent. In other corporate news, Pacific Brands and Amcor surged 15.6 and 4.3 percent, respectively, after upbeat full-year earnings.
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Kospi gains 0.9%
South Korea's Kospi index swerved back into positive territory following choppy trading, while the junior Kosdaq index widened gains to 5.2 percent, as tensions along the Korean peninsula eased.
Hefty buy orders for carmakers Hyundai Motor and Kia Motors underpinned the rebound; both stocks soared 3.5 and 4.9 percent, respectively. Chipmaker SK Hynix, which announced plans to spend 31 trillion won ($24.94 billion) to build two new chip plants in South Korea, closed up 7.9 percent.
Refiners also made a comeback on Tuesday, with S-Oil and SK Innovation advancing 3 and 1.5 percent respectively, after falling more than 2 percent at the open.
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Rest of Asia
Taiwan's weighted index closed up 3.6 percent, recouping slightly more than half of Monday's steep decline which took the Taiex index down to a three-year low at the close.
According to Reuters, expectations that the government would soon step in to shore up market confidence propelled the bourse on Tuesday.
In Southeast Asia, Singapore's Straits Times index erased a dismal to close 1.51 percent higher. On late Tuesday, a statement from the government said that the country's parliament has been dissolved, a sign that an announcement on the date of the general election is imminent.
Indonesia's Jakarta Composite closed up 1.56 percent, breaking a five-day losing streak, while Malaysia's FTSE Bursa Malaysia KLCI index managed to close 2.08 percent higher, after seeing near 2 percent losses earlier in the session. Thailand's benchmark SET index finished the day 1.75 percent higher.