Chinese shares plummeted on Tuesday, while their counterparts in Sydney witnessed volatile trade following the Reserve Bank of Australia's (RBA) decision to cut interest rates for the second time this year.
The central bank lowered rates by 25 basis points in a widely expected move, taking the benchmark lending rate to a new record low of 2 percent. The Australian dollar fell as low as $0.7795 on the data release, but quickly climbed back up to trade near intra-day highs of $0.7898 against the greenback.
"The RBA rate cut was in line with market expectations however, the statement was perhaps a little more upbeat than some would have expected. In a nutshell, it gave no hint of further easing and sounded like it is done with this easing cycle. Some are wondering why the RBA wouldn't keep the easing bias in its language to keep the Aussie dollar lower," IG market strategist Stan Shamu wrote in a note. "The price action in response was extremely choppy as it didn't take investors long to realize the shift in language from the statement."
Meanwhile, markets in Japan, South Korea and Thailand are closed for public holidays.
Overnight, U.S. stocks finished modestly higher, following positive momentum from Europe and as earnings came in better than expected. The Dow Jones Industrial Average and the S&P 500 gained 0.3 percent, respectively, while the Nasdaq Composite settled up 0.2 percent.