The Nikkei share average <.N225> jumped 1.3 percent as trade resume after a public holiday on Monday. Shares of Honda <7267.T> rose 2.3 percent and were one of the biggest boosts to the index ahead of the company’s results due on Friday.

Outside of Japan, shares in the Asia-Pacific region slid 0.3 percent, bringing year-to-date losses to 21 percent, according to an MSCI index <.MIAPJ0000PUS>.

South Korea’s KOSPI <.KS11> slipped 0.3 percent, led by the country’s export-dependent technology sector on fears of sharply slowing demand in the West.

Samsung Electronics stock <005930.KS> tumbled 2 percent and LG Electronics <066570.KS> was down 3.5 percent after earnings from Texas Instruments and SanDisk that fell short of analysts’ estimates.

American Express , Apple and cruise ship operator Royal Caribbean Cruises all warned about their results on Monday, suggesting climbing food and energy prices and sluggish economic growth have indiscriminately hit consumers of all income levels.

Investors have been yanking money out of stocks closely tied to discretionary consumer spending and sending it to beaten down sectors and to the healthcare sector.

Last week funds focussed on the consumer goods sector had the highest outflow of equity capital in eight months, while healthcare and biotechnology funds had the best week in more than 18 months, according to EPFR Global, a Boston-based research firm that tracks $10 trillion (5 trillion pounds) in assets.

Financial sector and real estate sector funds, two areas that have been battered by the year-old global credit crisis, saw fresh money.

U.S. officials have made it very clear they will do all they can to keep the transmission lines open between the financial sector and home-buyers, reinforcing the belief among a significant number of investors that these sectors -- financials and real estate -- have been oversold, said Cameron Brandt, EPFR Global senior analyst, in a note.

Oil prices pared some of the previous session’s gains as Tropical Storm Dolly looked likely to miss major U.S. oil and gas production facilities, easing fears of supply disruptions from the first big storm threat of 2008.

U.S. light crude fell 67 cents to $130.37 a barrel after gaining more than $3 a barrel on concerns over Dolly in the previous session.

The euro was trading around $1.5931, about a cent below an all-time high touched last week. Against the yen, the dollar was down 0.1 percent at 106.33 yen.

Dealing in five derivatives, including Japanese government bond futures and TOPIX futures, was halted early on Tuesday due to system problems, the Tokyo Stock Exchange said. It was unclear when trading would resume.

(Additional reporting by Geraldine Chua)

(Editing by Kim Coghill)