Japan's Nikkei average hit a fresh seven-month closing high on Tuesday as investors reassessed the impact of Elpida Memory Inc's (6665.T) bankruptcy protection filing on the chip sector and bought back some of the stocks they sold earlier in the day.

The launch of several new investment trust funds, which is set for Wednesday, also helped improve market sentiment in the afternoon session, reversing earlier losses.

The Nikkei .N225 closed 0.9 percent higher at 9,722.52 after trading as low as 9,528.77 in the morning session, while the broader Topix .TOPX was up 0.4 percent at 838.48.