Angus Nicholson, a market analyst at IG told, lot of the recent rally in stocks has been "driven by a major reversal (or short covering) in financials, materials and energy." But, he said, momentum, which had been declining in other sectors already, is now falling in these sectors as well.
China's trade data, wasn't positive for sentiment, with February exports falling 25.4 percent in U.S. dollar terms, while imports fell 13.8 percent, with both declines wider than expectations. The drop in exports was the largest on-year drop since 2009, according to Reuters.
Japan's benchmark Nikkei 225 lost 0.41 percent, extending Monday's 0.6 percent drop.
Before the market open, Reuters reported revised government data showed Japan's economy shrank at an annualized 1.1 percent in the final quarter of 2015. This was revised up from a preliminary reading of a 1.4 percent contraction.
Across the Korean Strait, the Kospi was lower by 0.69 percent; in Hong Kong, the Hang Seng index slid 0.80 percent.
The S&P/ASX 200, Australia's benchmark index, ended down 34.81 points, or 0.68 percent, at 5,108.0, dragged by losses in the energy, materials and financials sectors. The sectors were down 0.96, 0.53 and 0.91 percent, respectively.
Chinese markets also traded lower, with the Shanghai composite falling 1.73 percent and the Shenzhen composite dropping 0.97 percent.
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