The Nikkei 225 index ended at a six-year high Tuesday in Tokyo, bolstered by gains in Mitsui Fudosan Co. and other domestic-related issues, including banks and telecommunications shares.
In Tokyo, the Nikkei 225 index rose 117.12 points, or 0.67 percent, to finish at 17,621.45 while Hong Kong's Hang Seng Index dropped 461.16 points, or 2.2 percent, to 20,132.25.
Sentiment was buoyed by Japanese corporate goods price data released Tuesday -- which showed prices rose at their slowest pace since November 2005, and suggested Japan does not face any immediate threat of inflation that could pressure the Bank of Japan to raise interest rates.
Stocks in companies with a strong earnings outlook advanced, including real estate developers and steelmakers, traders said. Mitsui Fudosan Co.surged 6.83 percent to 3,440 yen (US$28.43) and Nippon Steel Corp. added 0.83 percent to 728 yen (US$6.02).
Elsewhere:
BANGKOK: Thailand's shares ended lower after moderate trade on profit taking mainly in blue chips. The Stock Exchange of Thailand's SET index lost o.7 percent to finish at 692.48 points.
JAKARTA: Indonesian shares slipped 0.1 percent to 1,731.97, as investors sell bellwether Telekomunikasi Indonesia (TLKM.JK) on concerns about chief executive succession at annual general meeting later this month, traders said.
KUALA LUMPUR: Malaysia's key stock index rose after bargain hunting erased earlier losses. The Kuala Lumpur Composite Index rose 0.1 percent to finish at 1,234.31 points.
MANILA: Philippine shares ended slightly lower ahead of corporate earnings results and a possible U.S. rate hike. The 30-company Philippine Stock Exchange Index dropped 0.25 point, or 0.01 percent, at 3,233.91.
MUMBAI: Indian shares ended lower for the second consecutive day, driven by investors unwinding positions in futures and options. The Bombay Stock Exchange's 30-stock Sensitive Index, or Sensex, closed the day down 0.7 percent, or 99.72 points, at 14,090.98.
SEOUL: South Korean shares rose slightly after negotiators reached a tentative agreement on initial steps toward North Korea's nuclear disarmament. The Korea Composite Stock Price Index, or Kospi, rose 4.15 points, or 0.3 percent, to 1,418.44.
SHANGHAI: Chinese shares edged upward in pre-holiday trading, although gains were limited by profit-taking among some blue chips. The benchmark Shanghai Composite Index added 0.9 percent at 2,831.87. The Shenzhen Composite Index rose 1.7 percent to 710.92.
SINGAPORE: Singaporean shares closed lower as traders said the index would likely move sideways this week unless the Singapore government announces surprise pro-business measures when it presents its national budget Thursday. The Strait Times Index dropped 21.3 points, or 0.7 percent, at 3,149.16.
TAIPEI: Taiwan shares fell as investors took profits in the electronics sector. The Weighted Price Index of the Taiwan Stock Exchange dropped 39.53 points, or 0.5 percent, to 7,736.83.
WELLINGTON: New Zealand stocks ended flat as the market slipped into a holding pattern ahead of key blue chip results, with Fletcher Building likely to set the scene Wednesday with its fiscal first-half earnings. The benchmark NZX-50 added 5.2 points, or 0.1 percent, to 4,184.84.
SYDNEY: Australian shares hit record highs as positive corporate earnings and expectations of more to come overshadowed falls in commodity prices and weaker U.S. markets. The benchmark S&P/ASX200 index added 12.5 points, or 0.4 percent, to 5,936.6.
With files from wire services
