According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$11.13 billion (US$364 million)-worth of shares on the main board, picking up large-cap electronics stocks, which sent the weighted index up 1.22 percent.

Global stock markets were mixed on Tuesday as investors awaited Federal Reserve chair Janet Yellen's testimony to the U.S. Congress.

But the dollar grew top-heavy in late afternoon trading as investors retreated to the sidelines before U.S. Federal Reserve Chairwoman Janet Yellen's congressional testimony, scheduled for Wednesday and Thursday.

ASIA'S DAY: Japan's Nikkei 225 index gained 0.6 percent to 20,195.48 on expectations the yen will weaken further against the dollar as the central bank strives to keep long-term bond yields low.

Data on Monday showed exports from Germany, Europe's biggest economy, rose more strongly than expected in May. The consensus is for growth of 0.3 percent, compared to a decline of 0.5 percent a year ago.

"Looking ahead, we think improving corporate earnings are the key ingredient needed to sustain the equity bull market", said Bob Doll, senior portfolio manager and chief equity strategist at Nuveen Asset Management Llc.

Game, set, scream: Simona Halep stunned by Johanna Konta fan
After repeated questioning over her father's hand signals during the match, Garcia snapped: "Oh, my gosh". After an intense, battling first set, it was Konta who broke down in the tiebreak.

Last month, the Fed has raised interest rates by 25 basis points to 1.25 percent.

The Bank of Canada is expected to raise rates on Wednesday.

The dollar rose nearly 0.4 per cent to 114.29 yen, a two-month peak, while the dollar index - which measures the dollar's value against a basket of other major currencies - was a touch firmer at 96.071.

Another retailer, Best Buy, dived 6.3 per cent following reports that Amazon plans to launch its own service of technical experts to make house calls, in direct competition with Best Buy's "Geek Squad". The Russell 2000 index of smaller-company stocks rose 2 points, or 0.2 percent, to 1,411.

Based on the minutes of the last Federal Open Market Committee (FOMC) released on July 5, Yellen may testify that the Fed will seek to reduce the central bank's Treasury bond holdings and mortgage-backed securities by August, effectively tightening the supply of US dollars. The resulting surge in euro zone yields had also helped the benchmark Treasury yield climb to two-month highs on Friday. The productivity slowdown, found not just in the US but also other advanced economies, reflects a combination of factors, perhaps a "productive pause" as firms retool to incorporate new technology as well as a postrecession decline in research-and-development investment that has started to reverse.