Asian closed mixed on Tuesday, with most major markets extending Monday's global rally on easing Brexit concerns and gains in oil prices.
In Japan, the benchmark Nikkei 225 closed up 203.81 points, or 1.28 percent, at 16,169.11, retracing its early losses of more than 1 percent as the yen weakened against the dollar.
The Japanese yen earlier traded near a 22-month high at 103.57 against the dollar, before weakening to around 104.47 as of 2:24 p.m. HK/SIN. On Monday afternoon local time, the currency pair traded at levels near 104.69.
Major exporters retraced losses to close higher, with shares of Toyota up 1.24 percent, Nissan shares adding 0.45 percent while Sony shares rose by 2.43 percent. A stronger yen is usually a negative for exporters as it reduces their overseas revenue when converted into local currency.
Across the Korean Strait, the Kospi closed near flat at 1,982.70. Australia's ASX 200 advanced 17.60 points, or 0.33 percent, to 5,274.36, boosted by a 0.68 percent increase in the financials sub-index that accounts for nearly half of the broader index.
Major Australian banks - ANZ, Commonwealth Bank of Australia, Westpac and NAB - closed mixed, between down 0.31 percent and up 1.63 percent; banking stocks were mostly fueled by a higher finish in the European banking sector on Monday.
Chinese mainland markets finished lower, with the Shanghai composite down 9.9 points, or 0.34 percent, at 2,878.90 and the Shenzhen composite finished lower by 19.40 points, or 1.01 percent, to 1,889.71. In Hong Kong, the Hang Seng index was up 0.55 percent as of 3:05 p.m. HK/SIN.
"The markets have a myopic focus on one thing: the U.K. referendum vote," said Chris Weston, chief market strategist at spreadbettor IG.
Risk sentiment was given a fillip at the start of the week, after several new polls published in the United Kingdom (U.K.) at the weekend suggested a swing of momentum in favor of the 'remain camp'. The polling data saw sterling rally, stocks rise and bond yields come off of the record lows reached in the previous week.
At 2:30 p.m. HK/SIN on Tuesday, the pound traded at $1.4703, up from levels near $1.40 in the previous week.