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Wales held Belgium to a 1-1 draw to claim their first point after Brennan Johnson scored a late equaliser to cancel out a Youri Tielemans goal in Cardiff.
The former world No. 1 will be out of action for three weeks.
It was a second tour-level title for Alcaraz after his victory in Umag last year.
Nadal, playing in what is considered to be the greatest era of men's tennis, surpassed the haul of Roger Federer and Novak Djokovic on Sunday.
A win for Nadal in Sunday's final will break a three-way tie with Novak Djokovic and Roger Federer and give him sole owenership of the record for most Grand Slam singles titles.
After dropping the fourth set, Nadal marshalled his resources off court with a medical time-out then returned to break Shapovalov in the second game to wrest back the momentum.
Nadal has reached his 14th quarterfinals of the Australian Open.
Osaka will next face Amanda Anisimova, a 20-year-old American who beat Olympic gold medalist Belinda Bencic 6-2, 7-5.
With so much attention on the 11-day saga of Djokovic's attempt to participate in the year's first Grand Slam tournament, the returns of Osaka and Rafael Nadal have been overshadowed.
The 25-year-old, who will make his second appearance at the ATP Finals, defeated Australia's Alexei Popyrin 7-6(3), 6-3 in the opening round of the Vienna Open.