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Asian markets traded mostly higher despite a lacklustre lead from Wall Street, where US stocks closed lower.

Chinese shares headed higher after the Shanghai and Shenzhen stock exchanges revised rules on short-selling in an attempt to reduce market volatility.

The Shanghai Composite closed 3.7% higher at 3,756.54, while Hong Kong's Hang Seng finished flat at 24,406.12.

The changes prevent short-sellers from borrowing and repaying securities on the same day.

It is the latest attempt by authorities to stem recent losses on the market.

Australian shares were higher after the central bank decided to leave interest rates unchanged at a record low of 2%.

The move was widely expected by economists and the benchmark ASX 200 index closed up 0.3% at 5,697.90.

In Japan, the Nikkei 225 index closed down 0.1% at 20,520.36.

Shares of Toyota ended 1% lower ahead of its earnings report, which showed a 10% rise in first quarter net profit, beating expectations.

In Seoul, the Kospi shares index finished up 1% at 2,027.99, rebounding from its lowest since mid-March on Monday.