Regional trading volumes were light, with markets in China, Hong Kong and South Korea closed for the Lunar New Year holidays.

The U.S. dollar was broadly higher in Asian trade ahead of the release of key U.S. economic data as well as the minutes from the Fed's January policy meeting.

Gold rose over 1 percent to trade above $4,900 an ounce, after having fallen more than 2 percent to hit a one-week low in the previous session.

Oil edged up slightly after falling about 2 percent to a two-week low in the previous session on signs of easing geopolitical tensions.

Japanese markets advanced after separate set of data showed Japan's exports surged in January and business confidence improved in February, offering cautious relief for policymakers seeking to stabilize a stuttering economy.

In trade-related news, U.S. President Donald Trump announced the first $36 billion tranche of Japan's $550 billion U.S. investment pledge tied to a tariff deal.

In a statement late Tuesday, U.S. commerce secretary, Howard Lutnick, said Japan would invest $36 billion in three projects: a natural gas plant in Ohio, a crude oil export facility along the U.S. Gulf Coast and a synthetic diamond manufacturing site in Georgia.

The Nikkei average climbed 1.02 percent to 57,143.84 while the broader Topix index closed up 1.21 percent at 3,807.25.

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