Most Asian stocks began the week in negative territory as Japan revealed its economy shrank in the April to June period.
Japan's Cabinet Office said gross domestic product contracted by 0.4% compared to the previous three months, slightly bettering analyst forecasts for a 0.5% decline.
On an annualised basis, the economy shrank 1.6% for the quarter following a revised expansion of 4.5% in the first three months of the year.
The Nikkei benchmark index was up by 0.2% at 20,559.59 points at mid-day.
Analysts said the contraction in the Japanese economy resulted due to tepid household spending and sluggish exports.
"If weak private consumption persists, that would be a further blow to Abe's administration, which is facing falling support rates ahead of next year's upper house election," Credit Suisse chief economist Hiromichi Shirakawa told Reuters.
"This could raise chances of additional fiscal stimulus."
China stocks fall
Mainland China's Shanghai Composite index was down by 0.1% at 3,960.61, while the Hang Seng dipped 1% to 23,754.21.
Earlier, China's central bank held its daily fixing rate for the yuan broadly steady against the US dollar after devaluing the currency by more than 3% last week.
The midpoint rate was set at 6.3969 per dollar compared to 14 August's close of 6.3975.
Elsewhere in the region, Thailand posted 2.8% year-on-year GDP growth for the second quarter, easing from the 3% expansion in the preceding three months.
"The yuan devaluation is not good news for Thailand, as it will put more pressure on our exports," Pimonwan Mahujchariyawong, a Bangkok-based economist at Kasikorn Research, told Bloomberg.
"Government spending and tourism are the only two engines that can drive growth. But the outlook is dimmer now with the yuan move."
In South Korea, the Kospi index fell by 0.4% to 1,975.42 as trading restarted following a long weekend.
Australia's S&P/ASX 200 benchmark rose 0.3% to 5,374.90 points.
Meanwhile, markets in Indonesia are closed for Independence Day.