The Philippine index <.PSI> reversed course and lost 1.2%, after extending gains earlier in the day to highest since March last year.
The index added 2.7% on Monday in "anticipation of better corporate earnings, indication of a policy rate cut and lower bond yield," said Miguel Ong, research analyst at AP Securities in Manila.
"Today's (Tuesday) losses are more of a healthy collection."
Lender BDO Unibank Inc dropped 5.1% and conglomerate SM Investments Corp was 1.7% down.
Meanwhile, the Singapore index <.STI> closed 0.4% higher ahead of non-oil export figures due on Wednesday, which will be closely watched for any further signs of weakness in the export-reliant economy.
Heavyweights DBS Group Holdings Ltd and Jardine Strategic Holdings Ltd gained 0.5% and 1.1%, respectively.
Expectations of the central bank easing policy at its semi-annual meeting in October increased after data showed the economy grow just 0.1% in second-quarter, its slowest pace in a decade.
The International Monetary Fund on Tuesday trimmed Singapore's 2019 economic growth forecast to 2% from 2.3% as global trade tensions hit exports from the city-state.
Vietnam stocks <.VNI> closed up 1% buoyed by real estate and financial stocks. Vinhomes JSC added 2.3%, while Vietcombank rose 2.9% and was the best performer in the index. The bank's first-half pretax profit jumped 40.7% from a year ago.
Indonesian shares <.JKSE> fell 0.3% dragged by financials and communication services sectors. Bank Mandiri and Telekomunikasi Indonesia each lost 0.9%.
The fall is caused partly by rotation into government bonds following Tuesday's auction, said Anugerah Zamzami Nasr, Equity Research Analyst at PT Phillip Sekuritas Indonesia.
Indonesia raised 22.05 trillion rupiah ($1.58 billion) in a bond auction on Tuesday, higher than the indicative target of 15 trillion rupiah.
Malaysian stocks <.KLSE> also ended lower, with mobile service provider Digi.com declining 1.4%. The firm's largest shareholder Norway's Telenor flagged lower earnings due to problems at some of its Asian operations.
Thai financial markets were closed for a holiday.
(This July 16 story has bee refiled to correct day in paragraph 1 to Tuesday from Monday)
(Reporting by Niyati Shetty in Bengaluru; editing by Gopakumar Warrier)
By Niyati Shetty
