Stocks in Hong Kong and Shanghai were lower ahead of a key policy meeting in China next week.

The Hang Seng Index was trading down 0.4 percent early afternoon on Tuesday at 17,443. Meanwhile, the Shanghai Composite inched down 0.18 points to 2,922.

The Communist Party will convene the third plenary session of its 20th central committee on July 15, focusing on issues related to further comprehensively deepening reform and advancing Chinese modernisation.

Traders will also be keenly watching Federal Reserve chair Jerome Powell's remarks to Congress on Tuesday and Wednesday for any indications of when the Fed will start cutting rates.

Powell last week fanned hopes of a cut, saying the battle against inflation had made "progress" and the job market was cooling. (Additional reporting by AFP)