"With everyone from the Bank of Japan governor to the finance minister and prime minister of Japan threatening to intervene if foreign exchange moves become too rapid, speculators are finding fewer reason to be remain short dollar/yen," Lien added.
The Australian dollar traded at $0.7340, down from levels above $0.76 early last week before the Reserve Bank of Australia surprised markets by cutting its cash rate.
"This has been very bullish for stocks that benefit from a weaker Aussie dollar, in particular tourism-related stocks, exporters and dollar earners," said Nicholson, adding the Aussie appears to be heading to the $0.71-$0.72 level this week.
Shares of Sydney Airport closed up 2.22 percent, hotelier Mantra Group added 0.25 percent and major carriers, Qantas and Virgin Australia, added 2.4 and 3.64 percent, respectively.
Oil prices advanced in the afternoon during Asian hours on Tuesday, after tumbling nearly 4 percent on Monday in the U.S. session. Global benchmark Brent retraced losses to trade up 0.85 percent at $44 a barrel as of 2:55 p.m. HK/SIN, while U.S. crude futures were up 0.39 percent at $43.61.
Investor focus is on U.S. crude inventory, which Reuters reported was expected to rise, and also on Saudi Arabia's newly appointed Energy Minister Khalid al-Falih.
Energy plays in Asia were mostly lower, with shares of Santos closing down 3.59 percent, Woodside Petroleum lower by 3.29 percent and Inpex closing down 0.22 percent. Chinese mainland oil plays were mixed, with Sinopec losing 0.97 percent and China Petroleum up 0.22 percent.
U.S. stocks closed mixed in below average-volume trade on Monday, with the Dow Jones industrial average down 0.2 percent, the S&P 500 closing up 0.08 percent and the Nasdaq composite adding 0.3 percent.
— Nyshka Chandran contributed to this report.
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This story has been updated to reflect that U.S. trading volume was below average Monday at about 6.75 billion shares. FactSet provided incorrect figures for an earlier version of this article.