Apple suppliers in the region took a hit following the tech giant's overnight tumble, which came on the back of a Nikkei report about a reported reduction in iPhone X production. In Japan, Japan Display closed lower by 0.83 percent although Sharp held above the flat line, gaining 0.25 percent. At 2:33 p.m. HK/SIN, Hong Kong's AAC Technologies and Sunny Optical were down 2.21 percent and 1.59 percent, respectively.
Over in Seoul, the Kospi declined 1.17 percent to close at 2,567.74 after rising nearly 1 percent and notching a record close in the previous session. Technology stocks traded lower, weighing on the broader index. Blue chip Samsung Electronics sank 2.77 percent ahead of its earnings report due Wednesday and SK Hynix declined 2.92 percent.
Down Under, the S&P/ASX 200 finished the session lower by 0.87 percent at 6,022.8 on broad-based weakness across sectors. The heavily-weighted financials sector closed lower by 0.58 percent and major mining stocks were mostly lower, with BHP falling by 1.27 percent.
Gold producers were mixed after several names reported production numbers for the second quarter. Newcrest Mining declined 1.83 percent and Evolution Mining reversed early losses to edge up by 0.36 percent by the end of the day.
Greater China markets also traded lower after sliding in the afternoon in the previous session on profit taking. Hong Kong's Hang Seng Index fell 1.05 percent in late afternoon trade.
On the mainland, the Shanghai composite closed down 34.81 points, or 0.99 percent, at 3,488.18, and the Shenzhen composite fell 10.23 points, or 0.53 percent, to 1,909.57.
U.S. stocks closed lower, with the Dow Jones industrial average declining 177.23 points to close at 26,439.48. That came as the yield on the 10-year Treasury note rose above 2.7 percent, its highest levels since April 2014. The rise in bond rates this year has been driven by concerns over higher inflation.
"There were no major news behind the move higher in yields, but given the recent break of key resistance levels, core yields now have more freedom to move higher," Rodrigo Catril, senior FX strategist at National Australia Bank, wrote in a morning note.
Major indexes stateside had closed at record highs last week on the back of upbeat corporate earnings. As of Monday morning, 78 percent of S&P 500 companies that have announced results have topped earnings expectations, according to FactSet.