Asian markets experienced a tight trading range before closing on a mixed note on Tuesday, as investors awaited a series of crucial U.S. economic data expected to provide further insight into the Federal Reserve's interest rate path.
Japanese markets saw notable gains as they resumed trading after a lengthy holiday weekend. In contrast, gold prices dipped in anticipation of key U.S. producer and consumer price inflation data slated for release this week.
Oil prices decreased during Asian trading hours after experiencing a surge of over 3 percent in the previous U.S. session, driven by escalating tensions in the Middle East.
Chinese equities managed to post modest gains despite lingering worries about economic recovery. The Shanghai Composite Index increased by 0.34 percent, closing at 2,867.95.
Hong Kong's Hang Seng Index rose by 0.36 percent to settle at 17,174.06, ahead of quarterly and half-yearly earnings reports from major Chinese firms and the upcoming releases of China's industrial production and retail sales figures.
Japanese markets continued their rebound from the previous week, propelled by hawkish signals from the Bank of Japan. The Nikkei Average surged 3.45 percent, closing at 36,232.51, while the broader Topix Index climbed 2.83 percent to 2,553.55.
Export-oriented companies benefited from a weaker yen, with automotive giants Nissan, Honda Motor, and Toyota Motor appreciating by 2-3 percent.
Technology stocks saw significant gains, with Tokyo Electron, Screen Holdings, and Advantest surging 6-8 percent, following a boost to the Philadelphia Stock Exchange Semiconductor Index by Nvidia Corp. Technology investor SoftBank Group also rose by 3.8 percent.
In Seoul, stocks remained relatively flat, with the Kospi ending up 0.12 percent at 2,621.50, marking its third consecutive day of gains.
Australian markets closed slightly higher, driven by gains in the mining and financial sectors. The benchmark S&P/ASX 200 inched up by 0.17 percent to 7,826.80, securing its third straight day of gains, while the broader All Ordinaries Index also increased by 0.17 percent, closing at 8,042.20.
Shares of Orora soared by 19.2 percent after the packaging company rejected a A$3.42 billion ($2.25 billion) acquisition bid from U.S. private equity firm Lone Star Fund. Sims Group shares surged by 10.7 percent following an agreement to sell its U.K. metals business for £195 million ($249.50 million).
In New Zealand, the benchmark S&P/NZX 50 Index rose by 0.31 percent to close at 12,319.06.
In the U.S., stock indices fluctuated before ending mixed overnight after experiencing volatility last week. The Dow Jones Industrial Average fell by 0.4 percent, while the S&P 500 saw a marginal increase, and the tech-heavy Nasdaq Composite edged up by 0.2 percent in anticipation of forthcoming key economic reports.
