Asian stocks advanced on Tuesday after data showed U.S. retail sales rebounded marginally in February, helping ease recession concerns.

Regional gains were also driven by optimism over China's economy fueled by the latest economic stimulus initiatives.

The dollar steadied near a five-month low against major peers while gold scaled a record peak above the key $3000 mark ahead of the Federal Reserve's policy meeting scheduled for March 18-19.

The Fed is expected to keep interest rates steady and maintain its hawkish outlook amid economic uncertainties.

Oil extended gains for a third straight session as escalating tensions in the Middle East overshadowed concerns about a potential global glut.

Chinese shares edged up slightly after recent announcements to boost consumer spending. The benchmark Shanghai Composite index closed up 0.11 percent at 3,429.76.

Hong Kong's Hang Seng index jumped 2.46 percent to 24,740.57, reaching a three-year peak as investors turned positive on the outlook for China. BYD shares surged 4.1 percent after the electric vehicle giant unveiled its new fast-charging technology.

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