Australian shares slipped 1.4 percent on Tuesday led by broad-based losses across sectors led by resources stocks while New Zealand's benchmark index hit a record high. The S&P/ASX 200 index fell 74.06 points to 5,111.40 points at the close of trade, moving away from a 10-week peak touched on Monday.
New Zealand's benchmark S&P/NZX 50 index scaled a new high of 6,607.86 points on Tuesday before ending up 0.2 percent at 6,577.82.
The energy and material indices were the hardest hit each with a loss of 1.7 percent. Among the worst performers, oil and gas companies Oil Search, Santos and Woodside fell between 1.8 and 2 percent, followed closely by engineering firm WorleyParsons.
Miners were also sharply lower with BHP Billiton off 2.2 percent, while fellow global miner Rio Tinto slid 1.8 percent. Fortescue Metals shed 0.4 percent after Moody's downgraded its ratings. Oil prices bounced from lows on Tuesday, but investors were concerned that a recent rally may have run out of steam.
The major banks were not spared either, with all big four lenders down between 1 percent and 2 percent.
Ports and rail freight company Asciano Ltd, however, leapt 1.3 percent after it received a A$9.1 billion ($6.8 billion) take-over offer by Qube Holdings, Canada's Brookfield Asset Management Inc and international partners.
New Zealand's biggest gainers were SkyCity, which added 4.9 percent and Spark, which added 1.7 percent. Investors are turning to high yielding stock in a bid to offset the low interest rate environment after the central bank cut interest rates to a record low 2.25 percent last week.