Sentiment continued to remain fragile, however, over inversion of the 10-year U.S. Treasury yield curve, an indicator of impending recession in the world's largest economy. Equities around the world witnessed a sharp selloff on Monday on fears over global economic growth.

However, the 10-year U.S. Treasury yield came off late-2017 lows and edged up to 2.442 percent, sending the MSCI's broadest index of Asia-Pacific shares outside Japan 0.2 percent higher after a 1.4 percent loss in the previous session.

Indonesian stocks, the top performer in the region, climbed 0.9 percent, boosted by gains in consumer staples and financials.

Shares of cigarettes maker Gudang Garam Tbk PT gained 2.9 percent, while Bank Negara Indonesia (Persero) Tbk PT added 1.4 percent.

Singapore shares added 0.6 percent, with conglomerate Jardine Matheson Holdings rising 1.2 percent.

The country's manufacturing output in February expanded slightly, rising 0.7 percent from a year earlier.

OCBC Bank in a note forecast a "lacklustre view of the manufacturing momentum for 1Q19 in the light of the dampened global growth prospects."

Thai shares closed 0.4 percent higher despite data showing the country's factory output in February slipped 1.6 percent, compared to a Reuters poll forecasting a 0.5 percent decline.

Financials and energy stocks led the index higher, with oil and gas explorer PTT Exploration and Production PCL rising 0.8 percent and Kasikornbank PCL edging 1.1 percent higher.

In Philippines, the benchmark index gained 0.6 percent, bolstered by industrial sector. Heavyweights SM Investments Corp and JG Summit Holdings added 1.2 percent and 1.5 percent, respectively.

Vietnam shares, however, bucked the trend and ended marginally lower, hurt by losses in utilities and real estate stocks.

(Reporting by Shanima A in Bengaluru; Editing by Shreejay Sinha)

By Shanima A