Strong results lift Nikkei, yen supported
London financial bookmakers were calling Britain's FTSE index between two and six points higher after European stocks reached a six-year closing high on Monday.
The yen edged up against the euro ahead a meeting of finance officials from Group of Seven rich nations on Friday and Saturday in Germany, at which European officials want to focus on the currency's recent weakness.
Crude oil sat near Monday's one-month peak above $59 a barrel, supported by a blast of cold weather in the United States. Gold was little changed.
Japan's Nikkei climbed 0.4 percent after strong results on Monday from the likes of Olympus, which rose 3.8 percent, and ahead of earnings from Toyota Motor (7203.T), which gained 1.8 percent.
Toyota later said fourth-quarter profits grew almost 20 percent and kept its full-year earnings forecast unchanged.
Australia's S&P ASX 200 jumped 0.8 percent to a record close.
"The market is still keenly sought after," said Paul Xiradis, chief executive of fund manager Ausbil Dexia Ltd. in Australia.
"Leading into the reporting season, the market has gone through a few upgrades ... The lead from companies is also suggestive that the results should be okay," he said.
MSCI's index of non-Japan Asian shares rose 0.6 percent to hit a record and to stand a third higher than in the middle of 2006.
Australia's top banks led the market higher, with National Australia Bank Ltd. up 1.4 percent. However, shares in investment bank Macquarie Bank Ltd. fell 3.0 percent after it said second-half earnings would be slightly below the first half.
Hong Kong's Hang Seng climbed 0.6 percent and Taiwan gained 1.2 percent with shipping firm Yangming Marine up nearly 7 percent on an Asian container shipping upgrade from Credit Suisse.
Seoul stocks reached a one-month closing high, with POSCO up 6.8 percent on hopes of less competition from Chinese rivals. Singapore shares were little changed after setting a record high on Monday.
The firm tone in Asia contrasted with Wall Street on Monday, where the Dow Jones industrial average held steady and the Nasdaq Composite Index dipped 0.2 percent. ------Yen up
The yen extended gains on wariness that the Japanese currency's broad weakness may be scrutinized at the G7 meeting.
European officials have said the G7 will take up the yen issue, prompting investors and dealers to close their yen short positions for now, particularly after data last week showed speculative yen short positions hit a record high.
"Market sentiment remains for a continuation of selling the yen for other currencies, but the yen's short positions as a result of such trading have also built up substantially, making players nervous about the risk of the yen strengthening," said Mitsuru Sahara, a senior trader at the Bank of Tokyo-Mitsubishi UFJ.
Last month, the euro rose to a record high against the yen while the dollar hit a four-year high versus the Japanese currency. The yen's real, trade-weighted value plummeted to a 21-year low in January.
Japan's extremely low interest rates encourage investors to sell the yen for higher yields elsewhere.
The euro slipped to 155.45 yen from 155.59 yen. The dollar was at 120.36 yen and at $1.2916 against the euro, both little changed from late U.S. trade.