Greater political uncertainty stateside weighed on the dollar as Asian markets digested stronger-than-expected China Caixin manufacturing PMI released Tuesday.
The Nikkei 225 recovered 60.61 points, or 0.3%, to 19,985.79
The Hang Seng Index vaulted 216.24 points, or 0.8%, to 27,540.23
The U.S. dollar ceded ground against the yen, falling to its lowest levels in six weeks. The greenback last fetched 110.22 yen after falling as low as 109.98 earlier in the session.
Market movers included several Japanese corporations that reported first-quarter earnings after the market close on Monday. Shares of Japan Airlines closed up 2.8% after the airline on Monday revised upwards its full-year earnings forecast after the airline's first-quarter earnings rose 12% on year Monday.
Panasonic said first-quarter operating profits rose 16.9%, in line with expectations, while Mizuho Financial Group announced net profits fell nearly 11% due to low interest rates. Panasonic stock was off 2.2% and Mizuho declined 0.6% by the end of the session.
On the earnings front, Japan's Honda reported after the market close that it topped expectations for its first-quarter earnings. Operating profits at the automaker stood at 269.2 billion yen ($2.44 billion U.S.), higher than an average forecast by analysts of 230.43 billion yen.
The company revised upwards its full-year profit forecast. Honda shares had closed higher by 0.6% before the earnings announcement.
Meanwhile, Sony announced record quarterly earnings for its first-quarter after the close. Profits rose almost three-fold to stand at 157.61 billion ($1.43 billion U.S.). Sony stock had closed down 1.8% before the results.
Korean stocks went up, an improvement driven by a bounce in manufacturing stocks. Market movers included Samsung Heavy rising 4% and Lotte Chemical gaining 3.1%.
Australian markets also gained, driven by broad-based gains across sectors, including strength in energy, gaining 2%, and utilities, better by 2.3%
In other economic news, the Reserve Bank of Australia held the cash rate steady at 1.5%Tuesday, as was widely expected by markets. The central bank also warned in a statement that strength in the Australian dollar could "contribute to subdued price pressures in the economy."
The Aussie dollar edged down in response to the news to trade as low as $0.7988 U.S. compared to levels around $0.8020 seen before. The Australian currency last stood at $0.7996.
CHINA
Major indexes on the mainland closed higher after the release of private sector manufacturing Purchasing Managers Index earlier in the session.
The CSI 300 gained 32.51 points, or 0.9%, to 3,770.38
The Caixin manufacturing PMI on Tuesday showed that growth in the Chinese manufacturing sector accelerated in July. The Caixin PMI rose to stand at 51.1 for the month of July, compared to the 50.4 figure seen in June. That was also above the 50.4 forecast by analysts.
Official PMI data released Monday came in below expectations. The official PMI for July stood at 51.4, lower than the 51.6 forecast by economists
In other markets
In Taiwan, the Taiex index gained 9.96 points, or 0.1%, to 10,437.29
In Korea, the Kospi index increased 20.25 points, or 0.8%, to 2,422.96
In Singapore, the Straits Times Index tacked on 8.68 points, or 0.3%, to 3,338.20
In New Zealand, the NZX 50 improved 35.45 points, or 0.5%, to 7,729.44
In Australia, the ASX 200 jumped 51.78 points, or 0.9%, to 5,772.37
