Hong Kong's Hang Seng index tumbled over 2%, leading losses in the region as investors further digested China's trade data that included a decline in imports of 1.4% and a slowed growth in exports of 8.5%.
Hong Kong-listed healthcare and basic materials stocks lead the declines as Asia-Pacific markets traded mixed on Monday.
In mainland China, the Shanghai Composite slid 1.1% and finished at 3,357.67 after marking the highest point in 10 months on Monday, and the Shenzhen Component also fell 0.9% to close at 11,125.02 on Tuesday.
In Australia, the S&P/ASX 200 fell 0.17% and closed at 7,264.1 ahead of the nation's annual Federal Budget announcement, with watchers widely expecting to see the first budget surplus since the 2008 financial crisis.
South Korea's Kospi fell 0.13% to end at 2,510 and the Kosdaq slid 0.76% to finish at 835.85.
Japan's Nikkei 225 rose 1.01% to end the day at 29,242.82 and the Topix closed 1.27% higher at 2,097.55, buoyed by basic materials and energy stocks. Japan saw a decline in household spending in April despite economists surveyed by Reuters expecting to see growth.
Thailand's Set Composite index was up marginally as the nation prepares for a general election this month with issues related to the economy sitting at the top of the agenda.
Overnight in the U.S., the Federal Reserve's quarterly Senior Loan Officer Opinion survey showed requirements got tougher for commercial and industrial loans. The report showed trouble within mid-sized institutions caused banks to tighten lending standards to households and businesses, potentially posing a threat to U.S. economic growth.
Stocks ended the session mixed, with the S&P 500 up marginally and the Nasdaq Composite climbing 0.18%. The Dow Jones Industrial Average slipped 0.17% as investors await U.S. inflation reports later this week.
— CNBC's Brian Evans, Samantha Subin contributed to this report