Japanese shares up more than 1 percent on Wednesday morning as the yen weakened against a stronger dollar, and after a private survey suggested the manufacturing sector might be recovering.
The Nikkei 225 leaped up 1.73 percent while the Topix bounced up 1.83 percent, likely due to expectations of a weaker yen after the greenback hit a 14-year high overnight against a basket of currencies.
Earlier, Toshiba plunged as low as 6.9 percent to 263.5 yen each share at the open, after media reports that a Japan watchdog suspects the company padded profits by 40 billion yen in the past three years, Reuters reported.
Shares of the Japanese conglomerate recovered from earlier losses to trade up 1.1 percent at 279.5 yen by 9:00 am HK/SIN. The stock has fallen nearly 37 percent or 19.6 yen each since last Dec. 26.
Last week, Toshiba said itmay have to book several billion dollars in one-off charges related to a U.S. nuclear power plant construction company acquisition.
The final Nikkei Japan manufacturing Purchasing Managers Index (PMI) rose to 52.4 in December, beating a preliminary reading of 51.9 and November's 51.3. A figure above 50 represents expansion in a sector, while a reading below 50 indicates contraction. The private survey indicates Japan's manufacturing sector is seeing signs of recovery, with increase domestic and global demand.
Australia's ASX 200 wavered between negative and positive for most of the morning session, and last traded up 0.1 percent.
South Korea's Kospi was nearly flat, up 0.02 percent, after South Korea's finance minister said the economy's recovery momentum will likely slow this year, and its time for fiscal policy to play a more active role to boost growth, Reuters reported.
The country is also in the midst of a months-long political scandal, with President Park Geun-hye refusing to testify on Tuesday in the impeachment trial that is set to determine her future, after denying charges of wrongdoing over the weekend.
On the economic data watch, India's Nikkei Services PMI for December is due while in Southeast Asia, Indonesia and Thailand will announce respective inflation data for the previous month.
Over in the U.S., the Dow Jones industrial average closed up 0.6 percent at 19,881.76, the S&P 500 finished up 0.85 percent at 2,257.83 and the Nasdaq composite gained 0.37 percent, to close at 5,429.08.
The greenback surged to a 14-year high, up 0.7 percent in the first two trading days of 2017, and supported by a strong read on the ISM manufacturing, which was up 54.7 in December, its highest level in two years
The dollar index was trading at 103.23 as of 9:00 am HK/SIN, compared to Tuesday's levels around 102. Against the greenback, the yen continued to weaken for the fifth straight session, at 117.91, while the Australian dollar was tracking $0.7224.
U.S. crude was up 0.57 percent to $52.33 per barrel in early Asian trade, while global benchmark Brent fell 2.4 percent to settle at $55.47 a barrel in the U.S. on Tuesday.
Oil prices dropped more than 2 percent on Tuesday in the U.S. as the dollar surged to a 14-year high. A stronger dollar may weigh on commodities, which are dollar-denominated, making it more expensive in other currencies.