Asian stock markets edged lower on Tuesday as economic data showed U.S. services sector unexpectedly softened, reinforcing expectations that the Federal Reserve may skip an interest rate hike when it meets next week.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1% at 514.37. Tokyo's Nikkei eased 0.22%, while Australia's S&P/ASX 200 index lost 0.73% ahead of the Reserve Bank of Australia's (RBA) policy decision later in the day.

China shares declined 0.15%, while Hong Kong's Hang Seng Index was 0.07% lower.

Data overnight showed that the U.S. services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Federal Reserve's fight against inflation.

Source : Reuters