CSI 300 Four-Month Low, Japan PPI, Nvidia Sell-Off

The CSI 300 in mainland China closed at its lowest level since Feb. 28 on Tuesday, while most markets in Asia-Pacific rose.

The index fell 0.54% to 3,457.90 – an almost four-month low – while the index in Hong Kong Hang Seng Index traded flat in the final hour.

Reuters reported that the Biden administration was investigation into three Chinese telecommunications companies over concerns that Beijing could gain access to US data through these companies' cloud and internet operations in the US

Shares of all three companies mentioned in the Reuters report, China Mobile, China Telecom and China Unicom, rose on Tuesday.

Japanese Nikkei 225 closed 0.95% higher at 39,173.15, while broad-based Topix rose 1.72%, Asia's leading gainer, to close at 2,787.37 – its highest level in three weeks.

South Korea's Kospi climbed 0.35% to 2,774.39, while the small-cap Kosdaq closed marginally higher at 841.99, snapping a three-day losing streak.

The Taiwan Weighted Index reversed losses, rising 0.27% to 22,875.97. Australia's S&P/ASX 200 closed 1.36% higher at 7,838.8.

Separately, investors in Asia assessed South Korean Consumer Confidence Index for Juneas well as Japanese producer prices in the service sector.

The Service Producer Price Index for Japan rose 2.5% year-on-year in May, compared to a 2.7% increase in April.

South Korea's consumer confidence index rose to 100.9 in June from 98.4 in May. This is happening against the backdrop of growing optimism about living standards and future household incomes, as well as domestic economic conditions.

In the U.S., the Dow Jones Industrial Average rose 0.67% overnight, while the S&P 500 fell 0.31%. The tech-heavy Nasdaq Composite had its worst day since April, falling 1.09%.

Tech treasure Nvidia fell 6.7% on Monday and was one of the biggest contributors to the Nasdaq's losses. Information technology was the S&P 500's worst-performing sector, down more than 2%.

— CNBC's Hakyung Kim and Yun Li contributed to this report.