Asia stocks decline on China data, central bank decisions awaited

Asian equities declined on Tuesday following disappointing economic data from China while central bank meetings in India and Australia were in focus.

China's services sector grew at its slowest pace in nearly nine years in July, according to a survey from HSBC/Markit. The services purchasing manager's index (PMI) fell to 50 from June's 15-month high of 53.1 and cast doubt about Beijing's economic recovery.

As widely expected, the Reserve Bank of Australia (RBA) left the cash rate unchanged at a record low of 2.5 percent while the Reserve Bank of India (RBI) left the key repo rate on hold at 8 percent.

ASX 200
CNBC 100

Nikkei skids 1%

Japanese shares gave up early gains to hit a new one-week low, declining for a fourth straight day.

Toyota Motor ended flat before reporting results for the April-June quarter. After the market close, the automaker's net profit rose an annual 4.6 percent while operating profit rose 4.4 percent on year.

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Isuzu Motors climbed 3 percent despite a posting 23 percent drop in quarterly profits late on Monday.

Shanghai dips 0.1%

Mainland shares reversed gains after hitting a new seven-month high earlier in the session as investors engaged in profit-taking.

Financials dragged down the benchmark Shanghai Composite after data showed the country's top-four state banks saw a decline in new loans last month. Bank of Communications fell nearly 2 percent while Bank of China eased 0.4 percent.

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Hong Kong's benchmark Hang Seng Index dipped 0.1 percent. HSBC rallied 1 percent, tracking gains in its London-listed shares, despite reporting a 12 percent drop in interim earnings.

Kospi down 0.7%

South Korean shares finished at a one-week low due to foreign selling while the won strengthened against the dollar for a second session.

Automakers Hyundai Motors and Kia Motors eased 0.6 and 1.6 percent, respectively.

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ASX down 0.4%

Australia's benchmark S&P ASX 200 hit a new three-week low after June trade data showed the economy's trade deficit stood at A$1.6 billion, which was better than estimates for a deficit of A$1.9 billion.

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Bionic ear implant maker Cochlear surged 10 percent after reporting a 7 percent rise in full-year revenue while toll operator Transurban shed 1 percent after posting a 64 percent annual rise in net profit.

Emerging markets in focus

Indonesian's Jakarta Composite index shed 0.2 percent after the country's second-quarter gross domestic product came in at 5.1 percent on year, below expectations for 5.3 percent.

Read MoreIs this the latest sign of the EM recovery?

Indian stocks dipped 0.7 percent in a cautious trading session after the central bank warned about inflationary risks if monsoon rains disappoint.