Hong Kong stocks lead declines in Asia as Wall Street benchmarks slip from record highs

Asia-Pacific markets turned lower Tuesday, with Hong Kong stocks leading the declines and Japan’s Nikkei 225 giving up gains from earlier in the session.

Trading sentiment was subdued following a pause in Wall Street’s rally on Monday as its key indexes retreated from record highs.

Major economic data this week include China’s manufacturing purchasing managers’ index and the U.S. personal consumption expenditures price index data, which is the Federal Reserve’s preferred inflation metric.

Japan’s Nikkei 225 traded 0.2% lower after rising about 0.4% moments after the open. It had hit a record high in the previous session. The broader Topix index, however, clung on to gains of 0.3%.

China’s CSI 300 index was flat after opening slightly lower, while Hong Kong’s Hang Seng index slid 0.9%.

South Korea’s Kospi edged 0.3% lower, while the small cap Kosdaq fell 1.4%.

In Australia, the S&P/ASX 200 was 0.3% lower.

The S&P 500 retreated from record highs notched last Friday as investors awaited key inflation data.

The benchmark index fell 0.38%, while the Nasdaq Composite declined 0.13%. The Dow Jones Industrial Average slipped 62.30 points, or 0.16%.

— CNBC’s Hakyung Kim and Tanaya Macheel contributed to this report.