Asia-Pacific markets fell across the board as China left its one-year and five-year loan prime rates unchanged and traders brace for the U.S. Federal Reserve's rate decision Wednesday stateside.
China's one-year and five-year loan prime rates were held at 3.45% and 4.2% respectively.
The region also saw August trade data out from Japan, while wholesale inflation in South Korea jumped for the first time since July 2022.
Japan's Nikkei 225 was down 0.66% to close at 33,023.78, while the Topix lost 1% and marked a three-day losing streak.
Japan's trade deficit in August narrowed by two-thirds on a year-on-year basis, while imports and exports recorded a smaller fall than expected.
In Australia, the S&P/ASX 200 fell 0.46% to end at 7,163.3, also notching a third straight day of losses.
In contrast, South Korea's Kospi closed 0.02% higher at 2,559.77, bucking the wider sell-off, but the Kosdaq was down 0.13% to 882.72.
Hong Kong's Hang Seng index slumped 0.62% after the LPR announcement, and mainland Chinese markets were also in negative territory, with the CSI 300 falling 0.4% and closing at 3,705.69.
On Tuesday in the U.S., all three major indexes lost ground ahead of the Fed's decision, with the Dow Jones Industrial Average shedding 0.31%.
The broad-market S&P 500 slid 0.22%, while the Nasdaq Composite lost 0.23%.
— CNBC's Samantha Subin and Alex Harring contributed to this report