Japan's Nikkei rallies on bargain-hunting, Kospi recovery

The largest gainers were Shiseido, up 5.11%, followed by Kawasaki Kisen Kaisha, 4.73% higher, and Tokuyama, which gained 4.17%.

The largest losers were Yaskawa Electric, down 8.98%, followed by Panasonic Holdings, 5.57% lower, and Toppan Holdings, which lost 4.64%.

The Nikkei turned higher in the afternoon along with a recovery in South Korea's Kospi, as correlation between the markets has strengthened recently.

"We are seeing some buying on the dip," said Maki Sawada, an equities strategist at Nomura Securities.

Central bank policy remained in focus after Reserve Bank of New Zealand Chief Economist Paul Conway warned that higher oil costs risk making inflation more persistent, reinforcing signals of further tightening across major economies.

Japan's Nikkei share average rallied on Tuesday, supported by bargain-buying and a tailwind from the tech-heavy South Korean market.

The benchmark Nikkei 225 rose 0.74% to close at 67,743.50, reversing an earlier slide of as much as 1.45%. The broader Topix gained 0.79% to 4,038.98.

Shares were broadly lower in the morning, taking cues from a decline in the U.S. market overnight after renewed U.S.-Iran hostilities caused a sharp rise in oil prices.

Mitsubishi UFJ Financial Group, Japan's largest banking group, advanced 1.67% to an all-time high, making it the biggest company in the domestic market in term of market value.