Japanese shares turned positive on Tuesday after damage from an earthquake appeared moderate, while most other Asian markets rallied as the dollar retreated.
The Nikkei 225 in Japan continued its run, gaining 56.92 points, or 0.3%, to 18,162.94
The Hang Seng Index in Hong Kong climbed 320.29 points, or 1.4%, to 22,678.07
Shares also benefited from a weaker yen, which traded at 111.03 U.S. mid-afternoon local time after previously strengthening to a session high of 110.23 against the U.S. dollar following the news of the earthquake.
In Tuesday's early hours, a magnitude 6.9 quake struck off the coast of Fukushima prefecture, and Japan's public broadcaster NHK reported a 60-centimetre tsunami had been observed at Fukushima's Onahama Port and a 90-cm tsunami was seen at Soma soon after the quake. A tsunami warning for waves of up to three metres was issued after Tuesday's quake, but was later lifted.
Analysts said the expected damage from quake was unlikely to be severe and would not have a big impact on markets.
Automaker Nissan earlier said it would suspend work at its engine factory in Fukushima at least until a tsunami warning was lifted. Toyota, on the other hand, said its factories in northeastern Japan were operating as usual.
Shares of Nissan closed down 1.4%, while Toyota slipped 1.1%. Other Japanese automakers also finished lower, with Mazda slipping 2.2%. Isuzu Motors beat the general trend to finish up 0.4%.
Meanwhile, Australia's benchmark index finished up, with all sectors closing higher. The heavily-weighted financial sector climbed 0.3%, while the materials sector advanced 2.8%. The energy sector advanced 2.6% buoyed by gains in oil prices during the U.S. session.
New Zealand markets were lower, however, following reports of a 6.3-magnitude earthquake off the North Island on Tuesday, little more than a week after a powerful tremor in the South Island rocked the country. The New Zealand dollar fell to a session low of $0.7051 as of late afternoon Tuesday.
CHINA
The CSI 300 in Shanghai added 27.25 points, or 0.8%, to 3,468.36
In China, the on-shore yuan traded at 6.8908 against the U.S. dollar, with the Chinese currency strengthening from levels near 6.8990 in the previous session. On Tuesday, the People's Bank of China set the yuan midpoint at 6.8779; China's central bank allows the yuan spot rate to rise or fall a maximum of 2% against the fix.
In other markets
In Korea, the Kospi recovered 17.42 points, or 0.9%, at 1,983.47
The Straits Times Index in Singapore regained 5.53 points, or 0.2%, to 2,822.20
In Taiwan, the Taiex Index jumped 92.28 points, or 1%, to 9,133.39
In New Zealand, the NZX 50 fell 32.56 points, or 0.5%, to 6,816.39
Australia's benchmark ASX 200 recouped 62 points, or 1.2%, at 5,413.33
