Adding to concerns was the International Monetary Fund's gloomy forecast on growth, which hurt investor sentiment. US stocks, which did not trade on Monday due to a holiday, are set to open lower as futures were down between 0.7 and 0.9 percent. Australia's financial index led the losses after rising for six consecutive days. Shares of each of the "Big Four" banks shed more than 1 percent, with Westpac Banking Corp shedding the most, 1.7 percent.
Michael McCarthy, chief market strategist at CMC Markets, said financials stocks have had a good run in the past few weeks and given that kind of movement, "any sign of nervousness is likely to produce a fall". Commonwealth Bank of Australia down 1.2 percent. The Australian metals and mining index lost 1 percent, with ASX-listed shares of BHP Group falling 1.3 percent. The world's biggest miner said its second-quarter iron ore production fell 9 percent and it flagged a $600 million negative impact due to production disruptions at its copper and iron ore operations.
Energy stocks shed 0.9 percent as oil prices slipped as signs of a spreading global economic slowdown stoked concerns over future fuel demand. New Zealand's benchmark S&P/NZX 50 index fell 0.4 percent or 33.94 points after four straight sessions of gains to finish the session at 9,114.63. NZX-listed shares of lender Westpac Banking Corp were the top percentage loser, plunging 2.6 percent.