Benchmark indexes traded higher after bargain hunters returned to seek values in the tech, financial, and real estate sectors. The Chinese premier reiterated China's annual GDP growth target of 5%.
Japan's consumer price inflation accelerated in May, and core inflation also advanced, reflecting the ending of energy subsidies to households. Manufacturing sector growth slowed in June, but the sector expanded for the second month after contracting for a year.
Market indexes in China remained under pressure after the People's Bank of China fixed the yuan at a slightly lower rate, reflecting a selloff in overnight trading.
Japanese investors look forward to the release of consumer inflation data and an update on business activities in the manufacturing and service sectors on Friday.
The People's Bank of China held steady its key lending rates used for consumer and residential mortgage loans but failed to provide additional supportive measures to revive the property market.
Japan's exports in May surpassed expectations and rose for the sixth month in a row amid a weak yen and strong demand from the U.S., China, Taiwan, and South Korea. Imports jumped to a five-month high, indicating improving domestic demand.
The yen remained in the crosshairs of currency traders as the Bank of Japan showed little urgency in lifting rates and tapering government bond purchases.
Benchmark indexes in China traded down amid ongoing property market worries and little progress on the policy front in improving home affordability and residential property developers' heavy debt burden.
The Nikkei 225 Stock Average plunged as much as 2% on the growing awareness that the persistent weakness in the yen could support higher inflation and weak consumer spending growth in the long term.
China's retail sales accelerated in May, but industrial production and fixed investment slowed. New home sales and property investment fell sharply, indicating a downturn in the sector may take several months before the market finds its bottom.
The Bank of Japan said it plans to slow the purchase of Japanese government bonds after the July meeting, in a nod to let the market set the long-term rates in Japan after controlling the yield curve for decades.
