South Korean stocks fell 2%, leading losses in the wider Asia-Pacific region as investors parse trade data coming out of China, as well as a rate hike by the Reserve Bank of Australia.
South Korea's Kospi lost 2.33% to close off at 2,443.96, easing off Monday's gains when the index posted its best session since late March 2020 after the country re-imposed a ban on short selling. In Japan, the Nikkei 225 slipped 1.34% to close at 32,271.82 while.
Australia's S&P/ASX 200 traded 0.29% lower to close at 6,977.1 after the Australian central bank raised its key policy rate by 25 basis points to 4.35%, in line with expectations.
Hong Kong's Hang Seng index fell 1.53% in its last hour of trade. China's CSI 300 closed 0.35% lower to end at 3,619.76.
Overnight in the U.S., all three indexes eked out narrow gains to build on last week's strong rally. The Nasdaq Composite jumped 0.3% to finish at 13,518.78,  notching its longest positive streak since January. The S&P 500 edged up 0.18% to end at 4,365.98, while the Dow Jones Industrial Average inched up 34.54 points, or 0.1%, to settle at 34,095.86.
— CNBC's Samantha Subin and Tanaya Macheel contributed to this report.