On Tuesday, Japan's Nikkei managed to gain 0.5%, boosted by the hopes of further and faster economic recovery on the back of an optimistic and upbeat profits session, although major gains were kept in check by worries about an increase in China's bank reserve requirement.

While Nikkei surged by 47.04 points to 10,060.34 points, the broader Topix added 0.4% to hit a high of 886.97 points.

A fall of 3.7% to 974 Yen was recorded by Sumitomo Corp, after the group said that it is all set to launch a 122.1 Billion Yen ($1.4 Billion) tender offer in order to raise its stake in Jupiter Telecom, the cable television company, to 40%.

"After the last earnings season there are more signs of recovery for Japanese companies, and this is making the Nikkei more attractive. Basically, this is preventing investors from selling heavily. There's nothing to take the Nikkei lower, but there isn't really anything immediate to get investors buying actively right now either", said Kenichi Hirano, Operating Officer at Tachibana Securities.

China's announcement that it is looking to increase bank reserve requirements, which came on Friday, has come right after a similar development which happened last month, and this has managed to raise fears that monetary tightening in the country would be more aggressive than previously estimated.