Asia-Pacific markets traded mixed Tuesday after Wall Street gained on a tech rally.

Japan's benchmark Nikkei 225 reversed course to lose 0.42%, closing at 43,459.29 after hitting a record high earlier in the day, following Prime Minister Shigeru Ishiba's announcement of his resignation Sunday.

The Topix retreated 0.51% to 3,122.12.

"Investors are betting that the next leader from the ruling Liberal Democratic Party (LDP) could unleash a new wave of fiscal stimulus to bolster the economy," XTB Investing's senior market analyst Hani Abuagla wrote in a note.

While near-term volatility is expected to pick up amid political uncertainties, the upcoming change ultimately provides for a "greater longer-term policy and political stability, and a more conducive pro-growth environment f

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