The benchmark S&P/ASX 200 index on Tuesday finished down 20.1 points, or 0.28 per cent, to 7,128.8. The broader All Ordinaries closed 0.35 per cent, or 25.7 points, lower to 7,373.2.
The ASX200 had been up as many as 16.9 points around lunchtime but dropped in the afternoon, possibly prompted by UBS and JP Morgan slashing their forecasts for China's economic growth after activity in April was smashed by coronavirus restrictions.
"Looking at the futures market in the US, it's weakened through the Asian trading time zones, down 1.2 per cent, so that's obviously filtered through, undercut our market somewhat," said Betashares chief economist David Bassanese.
"I think we've just been driven by the fact that futures are off, and maybe that doesn't bode too well for the US market overnight," he added.
The biggest thing markets are watching is US inflation data and whether the US Federal Reserve will be able to eventually take a break from its planned series of interest rate hikes later this year, Mr Bassanese said.
On Tuesday, tech names were again the biggest loser out of the ASX's 11 official sectors, collectively falling 3.0 per cent.
Afterpay owner Block slid 7.2 per cent, Brainchip fell 9.5 per cent and Sezzle fell 10.5 per cent to a fresh three-year low of 51 cents.
TechnologyOne fell 1.6 per cent to $10.24 despite the Brisbane-based enterprise software-as-a-service company reporting half-year profit before tax rose 14 per cent to $42.6 million.
Pushpay jumped 15.6 to a five-month high of $1.295 after the Auckland-based online donor management solution for US churches said it was exploring multiple takeover offers.
Qantas was down 1.5 per cent to $5.38 after acquiring a 51 per cent stake in Byron Bay-based online travel business TripADeal, as Australia's flag carrier looks to take advantage of a predicted post-pandemic boom to tried and tested holiday destinations.
"This is a great opportunity at the perfect time," chief executive Alan Joyce said.
Tabcorp spin-off The Lottery Corporation made its debut on the ASX under the ticker code TLC, with its shares closing at $4.70.
Tabcorp itself was down $4.285, or 83 per cent, to $1.055, as those shares no longer include Tabcorp's keno or lottery businesses.
The property and financial sectors were the only two to gain ground, with the latter rising 0.3 per cent after the biggest US bank by assets, JP Morgan Chase, said it may hit a key performance target this year after all.
Commonwealth Bank rose 0.6 per cent to $105.09, NAB advanced 1.0 per cent to $31.09, Westpac added 0.6 per cent to $23.54 and ANZ was up 0.2 per cent to $25.37.
The heavyweight mining sector was up early in the day but closed down 0.16 per cent, although Rio Tinto advanced 0.9 per cent to $110.47 and Fortescue Metals added 0.3 per cent to $20.77.
BHP was basically flat at $47.80, while goldminers dipped and James Hardie fell 4.9 per cent.
Coalminers New Hope and Yancoal were both up by slightly more than two per cent to hit their highest levels in several years as surging natural gas prices make the combustible rocks look cheap by comparison. Whitehaven Coal rose 1.0 per cent.
Nufarm fell 14.5 to $14.99 after Japanese chemical giant Sumitomo sold its 15.9 per cent stake in the agricultural chemical company on Monday, 12 years after buying into it.
Good Drinks Australia rose 6.0 per cent to 80 cents after the Gage Road Brewing Company owner inked a "transformative" deal to exclusively distribute Molson Coors beers such as Miller Genuine Draft and Coors in Australia.
The Australian dollar was buying 70.90 US cents, from 71.12 cents at Monday's close.
ON THE ASX:
The benchmark S&P/ASX200 index finished down 20.1 points, 0.28 per cent, to close at 7,128.8 on Tuesday.
The All Ordinaries index closed down 25.7, or 0.35 per cent, to 7,373.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
70.90 US cents, from 71.12 US cents when the ASX closed on Tuesday.
90.43 Japanese yen, from 90.71 yen.
66.36 Euro cents, from 67.03 cents.
56.31 British pence, from 56.58 pence.
109.98 NZ cents, from 109.99 NZ cents.
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