Most Asia markets reversed early losses to trade higher on Monday, but Japan shares slipped after data showed the world's third-largest economy failed to grow in the three months through June, missing already subdued forecasts.
In Australia, the ASX 200 advanced 9.08 points, or 0.16 percent, to 5,540, with the heavily-weighted financials sub-index rising 0.59 percent. The materials subindex, however, was down 1.52 percent, while the gold subindex fell 3.25 percent as resources producers came under pressure.
Major Australian miners were down more than 2 percent each, with Fortescue dropping 3.27 percent.
In Hong Kong, the Hang Seng index was up 0.75 percent in afternoon trade.
Chinese mainland markets were also higher, likely giving a boost to sentiment across the region after Japan's data disappointment. The Shanghai composite advanced 74.73 points, or 2.45 percent, to 3,125.40, and the Shenzhen composite gained 49.57 points, or 2.51 percent, to 2,023.23.
The market likely expected additional stimulus from Beijing after the mainland's data deluge last week showed the economic health of the world's second largest economy was falling short of expectations.
Investors were also likely anticipating the launch of the Shenzhen-Hong Kong stock connect due sometime this year. On Friday, Reuters reported that China's financial regulatory body, the China Securities Regulatory Commission (CSRC), was preparing for the imminent launch and had set up a small working group to coordinate it.
The cross-border investment program was similar to the Shanghai-Hong Kong connect program allowing investors in the Chinese mainland to buy Hong Kong-listed shares.
The launch of the Shenzhen-Hong Kong stock connect will "fuel momentum on small-caps," according to HSBC's head of Hong Kong and China equity research, Steven Sun.
"We expect the southbound fund flows of Shenzhen-Hong Kong Stock Connect, which could be announced in the coming weeks, to share similar preference on small-caps as domestic A-share investors," Sun said.
Markets in South Korea were closed for Liberation day public holiday.
Before market open on Monday, data from the Japanese cabinet office showed the country's gross domestic product (GDP) was unchanged in the April-June quarter from the January-March quarter, with exports weighing. The economy, however, grew 0.2 percent on an annualized basis.
A Reuters poll of economists had expected an annualized increase of 0.7 percent and a quarterly rise of 0.2 percent.
The subdued numbers will likely revive doubts over Japanese Prime Minister Shinzo Abe's efforts to kick start the economy. In July, Abe had announced a fiscal stimulus package worth 28 trillion yen, but analysts believed it would likely have limited impact in boosting future GDP growth.
Singapore's DBS Bank said in a Friday note, "the actual effects could be very limited, given that fresh spending in the package is of similar size as in the previous years."