Kospi drops 0.8%
South Korea's Kospi index ended at a fresh four-and-a-half-week low, after rising as much as 1 percent earlier in the session. The won also turned weaker to hover around a three-year trough following news out of China.
Cosmetic makers AmorePacific and LG Household & Health Care ended 3.5 and 5.5 percent lower, respectively, while Hotel Shilla plunged nearly 7 percent.
Affiliates of Lotte Group are in focus as Shin Dong-bin, chairman of Lotte Group and co-CEO of Lotte Holdings, offered a second apology on Tuesday, in a bid to curb growing criticism of the retail group.
Lotte Chemical and Lotte Insurance closed up 3.1 and 2.4 percent, respectively, while Lotte Shopping surged nearly 10 percent. The latter was also bolstered by fresh data which showed combined sales at department stores rose 0.9 percent last month from a year earlier.
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ASX sags 0.7%
Australia's S&P ASX 200 index erased early gains to finish in the red, with lenders and retailers leading the way down.
National Australia Bank was the biggest loser with a drop of 2.6 percent, while Westpac and Australia and New Zealand Banking receded more than 1 percent each. Retailers such as JB Hi-Fi and Harvey Norman fell 7.3 and 3.1 percent, respectively, on profit-taking following Monday's surge.
Meanwhile, hearing implant maker Cochlear closed down 7.2 percent after its annual profit missed expectations. Domino's Pizza shed 0.2 percent despite delivering a record profit.
Fortunately, gains in the resources sector helped to limit downside in the bourse. Market bellwether BHP Billiton and Rio Tinto advanced more than 1 percent each, while gold producers Evolution Mining gained 5.8 percent after signing an agreement with Edna Berly Mining.
On the domestic data front, business confidence in the country eased last month, according to a survey done by National Australia bank. as mining and construction firms turned more cautious.
Nikkei sheds 0.4%
Japan's Nikkei 225 index got off lightly in comparison to its regional peers. Pulling back from an intra-day high of 20,931 points, the Tokyo bourse turned negative by late-morning trade and eventually finished nearly half a percent lower.
Stocks with exposure to China proved resilient to the region-wide downbeat sentiment; Mitsubishi Materials Corp. and Sumitomo Metal Mining climbed more than 3 percent each, while Komatsu advanced 1.9 percent.
Steelmakers also attracted hefty buy orders; Nisshin Steel closed up 4.6 percent, while Japan Steelworks and JFE Holdings rose more than 3 percent each.
Precision machinery maker Screen Holdings pared gains to close down 1.5 percent, despite announcing a 47.3 percent rise in April-June operating profit.