Most Asian markets bounced back Tuesday following a strong recovery on Wall Street, with financials pacing gains, led by Mitsubishi UFJ Financial Group in Tokyo, Kookmin Bank in Seoul, HSBC Holdings in Hong Kong and China Life Insurance in Shanghai.
Japan's benchmark Nikkei 225 index rose 2.9 percent at 13,478.86 while Hong Kong's blue-chip Hang Seng Index gained 1 percent to 24,291.8 after earlier rising as much as 2.8 percent.
In Tokyo, steel and bank issues were among Tuesday's gainers. Kobe Steel rose 2.3 percent and Shinsei Bank jumped 9.4 percent.
Shares of Mitsubishi UFJ soared 4.6% and Mizuho Financial Group advanced 4.8%.
In China, the benchmark Shanghai Composite Index rose 0.9 percent after tumbling 7.2 percent Monday.
Shares of Bank of China Holdings ended 0.6% lower and shares of ICBC lost 0.6%, after local newspaper reports that have increased their provisions toward losses linked to the U.S. subprime mortgages.
Elsewhere:
South Korea's Kospi rose 0.7% to 1,637.91.
Taiwan's Weighted index advanced 1.2% to 7,576.42.
Singapore's Straits Times index slipped 0.1% to 3,031.89 after rising earlier in the day.
New Zealand's NZX 50 index slipped 0.2% to 3,704.17.
Australia's S&P/ASX 200 was the worst performer in the region, dropping 2.5% to 5,716.50, as trading resumed in Sydney after an extended holiday weekend.
with files from other services
