Most Asia markets stumbled on Tuesday, with shares in Australia falling amid an uncertain election outcome and an on-hold central bank. But mainland China shares rose as data showed services activity grew in June.
Australia's benchmark ASX 200 closed down 53.77 points, or 1.02 percent, at 5,228, dragged by the heavily-weighted financials sub-index, which fell 1.27 percent.
In Japan, the Nikkei 225 closed down 106.47 points, or 0.67 percent, at 15,669.33 on the back of a stronger yen. Across the Korean Strait, the Kospi slid 5.45 points, or 0.27 percent, to 1,989.85. In Hong Kong, the HSI was down 1.44 percent in afternoon trade.
Bucking the trend, Chinese mainland markets were higher, with the Shanghai composite closing up 18.50 points, or 0.62 percent, at 3,007.11, while the Shenzhen composite added 4.69 points, or 0.23 percent, to 2,006.37.
A private survey of small and medium companies in China showed activity in the services sector grew at a quicker pace in June. The Caixin services Purchasing Managers' Index (PMI) for June was at 52.7, compared with 51.2 in May, marking the fastest increase in 11 months. Levels above 50 indicate expansion.
Down under, major Australian banks were pressured, with shares of National Australia Bank closing down 1.56 percent. Analysts have previously told CNBC the ongoing political uncertainty in Australia was weighing on the future of the big banks.
The country faces an apparent political deadlock, after a federal election at the weekend failed to produce a clear winner. Incumbent Prime Minister Malcolm Turnbull said on Tuesday it would be a few more days before vote counting concludes, adding that he would work harder to regain the trust of citizens.
Continued political and economic uncertainty could see the country move closer to losing its vaunted triple-A credit rating.
The Reserve Bank of Australia (RBA) kept its monetary policy unchanged in a move that was widely expected. In its policy statement, the central bank cited low inflation and overall decent economic growth for keeping its key cash rate unchanged at 1.75 percent.
The Australian dollar had a muted reaction to the RBA decision, briefly touching a session high of $0.7543 before moving back to its pre-decision levels. As of 2:31 p.m. HK/SIN, the Aussie traded at $0.7505, after dropping to levels near $0.7438 on Monday amid the uncertainty around the election outcome.