Mainland markets choppy
China's share markets largely recouped earlier losses, with the Shanghai Composite index turning positive in late-day trading to close up 0.2 percent.
Airlines were among the day's gainers, thanks to a boost from lower oil prices. China Eastern Airlines and China Southern Airlines soared 2.5 and 1.1 percent respectively.
Dongfeng Auto surged by the daily maximum allowable of 10 percent after the China Association of Automobile Manufacturers said on Tuesday that vehicle sales in China are expected to grow by around 3 percent in 2015 on the back of government policies.
However, banking shares such as Bank of China and China Construction Bank sagged 0.8 and 0.6 percent respectively, after brokerage CLSA estimated that Chinese banks' bad loan ration could be as high as 8.1 percent, significantly higher than the official 1.5 percent.
Among China's other indexes, the benchmark CSI300 Index edged down 0.1 percent, while small-caps continued to outperform with the Shenzhen Composite erasing earlier losses to close up 1.1 percent.
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In the previous session, the Shanghai bourse rocketed up 3.3 percent to finish at its highest level since August 24, thanks to a report by the China Securities Journal that quoted a senior central banker saying that the country's stock market correction is "almost over."
Investor sentiment also got a boost from news that the central bank expanded a pilot scheme that allows banks to borrow money using high quality credit assets as collateral.
A note from DBS Group Research likens the program to Beijing's fiscal policy arrangements.
"First, the stimulative effects of this program would be targeted, because the [People's Bank of China] has control over who to lend to and how much to lend. This is consistent with PBoC's earlier 'targeted' RRR cuts, as well as targeted easing on the fiscal front [such as] stimulus that centers on urbanization projects and shanty town renovation.
Second, the loan application process would give the PBoC access to detailed information on banks' asset quality and lending practices, helping it better assess credit risks. In the same light, local government bond issuance requires detailed disclosure of local governments' financial information, allowing the central government and the public to better gauge the health of local government finances.
Third, the collateralized loan program would shift some risk from the banking system to the central bank," the report said.
Meanwhile, Hong Kong's Hang Seng Index turned negative yet again, down 0.5 percent. Chinese oil giants Sinopec and PetroChina fell nearly 2 percent each after state media reported that China plans to cut city-gate non-residential natural gas prices by up to 30 percent in some provinces at the end of October.