Asia markets were mixed Tuesday, as investors eyed the dollar for guidance amid growing expectations of a Federal Reserve rate hike in December.
Australia's ASX 200 closed down 0.37 percent, or 19.53 points, at 5,326.2, dragged by its materials sub-index, which was down 1.05 percent, and its healthcare sub-index, which was down 1.53 percent.
"The implied probability of a December rate hike has surged to 92 percent, so this morning we saw some profit taking and unwinding of activities," Margaret Yang, market analyst at CMC Markets, told CNBC. A hawkish Fed policy stance is generally a negative for emerging markets, as it makes dollar-denominated debt more expensive and spurs investment outflows.
The Nikkei 225 finished near flat, down 0.03 percent, or 4.47 points, at 17,668.15, likely taking its lead from the yen's direction. The yen hovered around the key level of 108, fetching 108.30 per dollar as of 3:06 pm HK/SIN, after initially trading as high as 107.76 earlier.