Over in the Greater China markets, Hong Kong's Hang Seng index lost some of its earlier gains, but still traded up by 0.26 percent as of 3:01 p.m. HK/SIN. Mainland Chinese stocks, meanwhile, closed in relatively cautious territory. The ended the trading day down by 0.1 percent at 2,777.981 while the Shenzhen composite closed largely flat around 1,497.70.

The ASX 200 , meanwhile, was up by 0.57 percent to close at 6,304.7 as the market Down Under continued its recovery from last week's political turmoil . Vitamin maker Blackmores ' stock soared as it ended the trading day up by 11.53 percent after the company earlier reported a 18.6 percent rise in its full-year profit.

The Nikkei 225 ended the trading day largely flat, closing at 22,813.47, with the country's shipping sector up by 2.3 percent. South Korea's Kospi closed in positive territory at 2,303.12, up by 0.17 percent, with industry heavyweight Samsung Electronics rising 0.54 percent.

Asia markets were broadly higher on Tuesday afternoon following yet another day of record highs on Wall Street, as the U.S. and Mexico announced a new trade agreement.

Overnight, stocks on Wall Street moved higher. The gained 0.8 percent to close at 2,896.74 — yet another record high. The Nasdaq Composite also ended the trading day stateside up by 0.9 percent to an all-time high of 8,017.90. The Dow Jones Industrial Average was up by 259.29 points to close at 26,049.64.

On Monday, the United States and Mexico announced that a deal had been agreed upon after months of negotiations between the two countries over the future of the North American Free Trade Agreement. The new deal, which President Donald Trump has said would be called The United States-Mexico Trade Agreement, is expected to last 16 years and will be reviewed every six years pending its approval by Congress, according to U.S. Trade Representative Robert Lighthizer.

Although not currently a part of the announced deal, Ottawa is likely to be an eventual party to the agreement, according to former Canadian trade negotiator Debra Steger.

Speaking with CNBC's "Street Signs," Steger said Trump's comments on the deal were "smoke and mirrors" as the U.S. president actually "only has legal authority from Congress to renegotiate the NAFTA at this point in time," rather than the bilateral agreement which was announced.

Still, some economists said the announcement was taken positively by markets.

"Risk sentiment was given a further leg up overnight with the news that the US and Mexico had agreed on a trade deal to replace NAFTA," David de Garis, a senior economist at the National Australia Bank, said in a morning note, adding that "sticking points over the automotive sector have been resolved."

Other economists, however, warned that the U.S.-Mexico trade deal may not bode well for America's ongoing trade spat with China.

"Far from ushering in a more reasonable attitude to free trade generally, it is safer to view this latest deal as one that the US has managed to bash into shape by sheer negotiating muscle," economists Robert Carnell and Prakash Sakpal of ING Asia Pacific said in a note.

"So as far as China and Asia are concerned, this new Mexico deal solves nothing. Indeed, it strengthens the US position to play hard-ball with China. This doesn't look good for the region," they added.

The U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 94.750 as of 3:06 p.m. HK/SIN after falling to an intraday low of 94.677 earlier in the Asian trading day.

The Japanese yen held largely firm against the dollar at 111.15 and the Australian dollar traded down at $0.7342 at 3:07 p.m. HK/SIN.

In other currency news, China's central bank lifted its official yuan midpoint by the most in nearly 15 months to 6.8052 per dollar. Investors are carefully eyeing the Chinese currency in light of a recent policy change from the People's Bank of China.

Oil prices lost their earlier gains in afternoon Asian trade. Global benchmark brent crude traded largely flat at $76.27 per barrel while U.S. West Texas Intermediate crude futures was down at $68.79 per barrel.

— Reuters contributed to this report.