Mitsubishi Motors shares have risen on media reports the auto maker will compensate customers after it admitted falsifying fuel efficiency data.
Shares in the Japanese auto maker have lost some 50% of their value since the scandal. On May 10 shares rose 1.9%.
The Nikkei 225 benchmark index closed 2.2% higher at 16,565.19 points.
Meanwhile, Takata shares shed 7.4% on reports of an additional seven million recalls of its faulty airbags.
On May 9, Takata had also said it was expecting a loss instead of a profit for the fiscal year until March due to the soaring costs of their global airbag recall.
In China, markets were reacting to fresh inflation data showing April’s price increases steady from the previous year.
China’s consumer price index (CPI) was up by 2.3% on the same month the previous year.
The Shanghai Composite index was flat at 2,832.59 points at the close of Tuesday’s session. Meanwhile Hong Kong’s Hang Seng closed higher by 0.4% at 20,242.68.
Australia’s ASX/200 finished trading 0.4% higher at 5,342.80, despite the country’s commodity giants suffering from lower iron ore prices.