Investing.com - Shares in Sydney fell on Tuesday as politics dominated the tone with Tokyo also down on a stronger yen, though Shanghai bucked the trend as a services survey aided sentiment.
The Nikkei 225 fell 0.87%, while the S&P/ASX 200 dropped 0.99%, with postal and absentee votes still being counted in Australia's national polls held last week that so far sees the Liberal Party-led coalition led by Prime Minister Malcolm Turnbull with 68 seats, and the opposition Labor at 67 seats, with 10 seats in doubt, according to projections by the Australian Broadcasting Corporation. The major parties need 76 seats to form a majority government. Ahead, the Reserve Bank of Australia's cash rate is expected to remain unchanged at 1.75% following the board meeting Tuesday, leaving the focus on the statement's wording on inflation, especially after two quarters of higher than expected growth.
Earlier in Australia, exports rose 1% and imports gained 2% month-on-month for May, and the trade balance came in at a deficit of A$2.21 billion, wider than the A$1.5 billion seen. Also in Australia comes retail sales for May rose 0.2%, compared with a 0.3% gain seen month-on-month.
The Shanghai Composite rose 0.51% as the Caixin services PMI gained more than expected.
In China, the Caixin services PMI for June came in at 52.7, better than the level seen at 52.3, and up from 51.2 the previous month.
"Some companies commented that new projects and firmer client demand had boosted sales in the latest survey period," said Caixin in a statement.
"Service sector growth is now supporting the overall economy, and the expansion for services is coming at a time when the manufacturing index is contracting, suggesting the nation's economic structure is becoming more balanced. The government must continue to relax service sector controls to encourage its development and push forward the nation's economic transformation," said Zhong Zhengsheng, Director of Macroeconomic Analysis at CEBM Group in Caixin's PMI release.
The yuan fell against the dollar heading for a third consecutive decline after the People's Bank of China weakened the fixing at 6.6594 compared with 6.6472 on Monday.
U.S. markets were shut on Monday for Independence Day.