Japanese shares dropped to its lowest levels since September 17 in sluggish trade as the yen fell below the 98 handle against the greenback, retreating further from Monday's one-month low of 98.46.
Nikkei 225 Average was down 102.61 points or 0.71 percent to 14,382.11. Singapore's Straits Times also declined 6.87 points or 0.22 percent to 3,174.63.
However, Hong Kong's Hang Seng gained 226.15 points or 0.99 percent to 23,086.01.
South Korea's Seoul Composite advanced 3.85 points or 0.19 percent to 2,002.72 and Taiwan Weighted was up 25.35 points or 0.31 percent to 8,212.37.
Chinese financial markets remain shut for the week-long Golden Week holiday, while India is also closed for Mahatma Gandhi's birthday.
Meanwhile, global markets started the third quarter mostly higher on Tuesday as investors shrugged off the first partial US government shutdown since 1996. Analysts warned the October 17 debt ceiling deadline poses a bigger risk for financial markets. If the federal borrowing limit is not increased by that time, the U.S. could default on its debt
Investors are also watching the European Central Bank (ECB) ahead of its Governing Council meeting later in the day. There is some focus on whether the ECB will hint at the need for further long-term refinancing operations (LTRO) to help support the economy.
(With inputs from CNBC)
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